United Capital raises N10bn in series 1 bond issuance

Aligning with its organizational objectives for the year 2020, United Capital Plc has announced that the Company has successfully raised the sum of N10 billion in its Series 1 Bond Issuance under a N50 billion Medium-Term Debt Programme registered with the Securities and Exchange Commission (SEC).

The bond issuance, which opened on Monday, May 4, 2020, and closed on Friday, May 15, 2020, was oversubscribed by 24per cent investor orders, making United Capital the first 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 24 per cent 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, Managing Director, Investment Banking, stated, Babatunde Obaniyi “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, the Company advised on the transaction structure, securing regulatory approvals and marketing strategy for the bonds including market timing, investor roadshow and crafting an appropriate and compelling business case for the issuance.

“The transaction, which has a tenor of 5years, recorded a 124 per cent subscription, with huge commitments from a diversified institutional investors base including Pension Fund Administrators and other players in the financial service space.“This very strong outcome further affirms buy-side investors’ confidence in the United Capital and a testament to the leading role United Capital continues to play in the financial services space,” he said.