Proshare Logo
   Market Date: 24-10-2014   
Agriculture All One Min News Archives Bonds Cap Mkt Sentiments Capital Market CASHLESS NIGERIA Commodities Corporate Earnings Daily & Weekly Market Updates Enterpreneurship ETFs Forex Frauds & Scandals General Global Market Insurance Investors NewsBeat Islamic Finance Mergers & Aquisitions Money Market Mortgage Mutual Funds Nigeria Economy Oil Sector Opinions and Analysis Pensions People Personal Finance Politics Power Products & Services Professionals Property Public Offers Private Placements Regulators REITs Stock PICKS Taxation Telcos Travel & Tours Unlisted OTC MARKET World of Business

UBA Plc Raises N20bn Tier2 Capital

Category: Capital Market


  Read (4255)
UBA Plc Raises N20bn Tier2 Capital

Lagos, 4/10/2010


United Bank for Africa, one of Africa’s leading financial services institutions has successfully raised a total of N20billion of Tier 2 capital in the first ever completed Naira denominated instrument in Nigeria. The additional capital is to help UBA further strengthen its capital base, enhance capital adequacy ratio, expand distribution channels and infrastructure and further grow risk assets with a view to enhancing its incomes. 


UBA Capital Limited, the investment banking subsidiary of United Bank for Africa (UBA) Plc acted as lead issuing House in the exercise. The joint issuing houses involved in the transaction were Greenwich Trust Limited, Stanbic IBTC and BGL Securities Limited. The issue is the first subordinated and unsecured bond in the history of the Nigerian capital market and it is a strong demonstration   of the depth of investor confidence in United Bank for Africa and the current banking reforms. It also underscores the leading role of UBA Capital in African capital markets. 


The N20billion bond issue is Series 1 of a N400billion Medium Term bond issuance programme approved by shareholders of UBA last year. The bond which was sold solely to Nigerian institutional investors including Pension Funds, banks, Insurance companies and Asset Management companies, attracted nearly N30billion of demand though UBA decided to take only N20billion. The issue which is at Par with a Fixed Rate coupon of 13% payable semi-annually opened and closed on Thursday September 30, 2010. The bond also has a bullet repayment, is tax exempt and will mature in 2017. 


The bond will be listed on the Stock Exchange subject to the approval of the Council of the Nigerian Stock Exchange”.


Speaking at the Completion Board Meeting for the bond on Thursday, 30th September 2010, Group managing Director/CEO of United Bank for Africa, Mr Phillips Oduoza said, "As one of Africa's leading financial services institution, UBA is pleased to further strengthen and diversify its capital through a funding initiative of this nature. This is a novel and landmark transaction in Nigeria. In line with our vision to be the Africa's Global Bank, we will continue to partner public and private sectors to assist them to achieve their financial needs in line with our commitment towards supporting the developmental aspirations of Africans and Africa related businesses"


In his remarks , Executive Director /Group Chief Finance Officer , Emmanuel Nnorom  said   "UBA is delighted that the reforms embarked upon by the Central Bank of Nigeria, the Securities and Exchange Commission as well as other regulators, have started yielding results by deepening the market and enabling UBA to tap the market with  new instruments which will benefit our banking system” . Mr Nnorom further thanked investors who embraced the bond for their confidence in the bank as well as the advisers and issuing houses for their professionalism. 


On his own part, Amadou Hott, Chief Executive Officer of UBA Capital  said  "This is a great achievement for UBA and UBA Capital looks forward to replicating such landmark transactions for other financial institutions in Nigeria and the rest of sub Saharan Africa to enable them meet their capital requirement and diversify their source of capital'. This is yet again evidence that Nigeria is moving towards a more sophisticated banking system and capital market”.   United Bank for Africa Plc is one of Africa’s leading financial institutions offering universal banking to more than 7.5 million customer accounts. It currently operates in 19 countries including Nigeria, Benin, Ghana, Côte d’Ivoire, Liberia, Sierra Leone, Sénégal, Burkina Faso, Guinea, Gabon, ChadKenya, Uganda, Tanzania, Zambia, Mozambique, Congo DRC, Congo Brazzaville and Mali.


With presence in New York, London, and Paris as well as other major financial hubs, UBA combines strong local knowledge of Africa and global expertise to connect people and businesses across Africa and the world through retail and corporate banking, innovative cross-border payments, trade finance and investment banking making it the bank of choice for Africans and African-related businesses globally


http://www.proshareng.com/investors/company.php?ref=UBA



Tags: , 



Comment With Your Facebook or Yahoo! ID


Latest news


News on Capital Market

About Us

Who We Are
Our Team & Partners
Corporate Governance
Advertise with Us
Subscribe / Unsubscribe
Site Map
News Feed - RSS
Newsletter
Contact Us
Volunteer Program
Message from CEO
Resources

News & Features
The Analyst / Market Data
Investor Relations Portal
The Regulator
Economy & Politics
WebTV
Training Portal
Events Calendar
NewsStands - Online Reputation

Products and Services

Research & Market Intelligence
Analyst Services
Offers & Rights Support Service
Investor Relations Services
Alert & Subscription Services
Share Support Services
Proshare Consult
Event & Seminar Coverage
Market Directory
File a Complaint
News & Analysis

#1minNews
News from TheANALYST
Video News from WebTV
Money Market Updates
Opinions & Analysis
Nigerian Economy
Market Data
The Regulator
Newsletters
Discussion Forum
Policy

Subscriber Agreement
Privacy Policy
Data Policy
Disclaimer
Copyright Policy
Trademarks
Comments in Site
Advertising Code
Conflict of Interest
Content Partnership
3rd Parties

Online Trading and Execution
Training
Legal Support Services
Web/Technology Services
File a Complaint