United Capital raises N10billion in Series 1 Bond Issuance

Aligning with its organisational objectives for the year 2020, United Capital Plc has successfully raised N10 billion in its Series 1 Bond issuance under a N30 billion Medium-Term Debt Programme registered with the Nigerian SEC.

The bond issuance, which opened on Monday, May 4, 2020 and closed on Friday, May 15, 2020, was oversubscribed in investor commitments by 24percent, making United Capital the first non-bank Issuing House to issue a Corporate Bond in the history of the Nigerian Capital market.

According to Group CEO, United Capital Plc, Peter Ashade “the bond issuance, which signifies the first by any Investment Bank in the history of the Nigerian Capital market solidifies our performance track record as a formidable ally in the Investment Banking industry. With an oversubscription by 24percent investor orders, we believe this milestone accentuates the confidence in our Institution, and its ability to diversify our corporate funding sources, provide innovative financial solutions and our unwavering commitment to our esteemed clients”.

Also commenting on the transaction, Babatunde Obaniyi, Managing Director, Investment Banking, United Capital stated “the bond issuance adds to the impressive portfolio of innovative and landmark transactions we have structured, and once again highlights our capabilities in the successful execution of novel debt capital market transactions. As a Joint Issuing house/book runner on the deal, United Capital advised on the transaction structure, securing regulatory approvals and marketing strategy for the bonds including market timing, investor road show and crafting an appropriate and compelling business case for the issuance.”

“The Series 1 bonds, which have a tenor of 5years, recorded a 124percent subscription, with commitments received from Pension Funds (comprising 64percent of the issue), other financial institutions as well as high net worth individuals. This very strong outcome further affirms buy-side investors’ confidence in United Capital Plc, and a testament to the leading role the organization continues to play in the financial services space”, he said

Iheanyi Nwachukwu

Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA). Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.