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