United
Bank for Africa (UBA) Plc, on Wednesday, April 8, 2015, became the first Nigerian company to
complete a dual listing of its corporate
bond on the on the Financial Market
Dealers Quotation Over-the-Counter (FMDQ-OTC)market and the NSE Nigerian Stock
Exchange (NSE).
The
FMDQ is Nigeria’s foremost debt capital securities exchange.
FMDQ is Nigeria’s foremost debt capital securities exchange.
UBA,
in December 2014, had successfully raised N30.5 Billion Tier-II Capital through
the issuance of Seven-Year Fixed Rate Unsecured Notes, maturing in 2021.
in December 2014, had successfully raised N30.5 Billion Tier-II Capital through
the issuance of Seven-Year Fixed Rate Unsecured Notes, maturing in 2021.
The
listing of the N30.5 billion 7-year tenor bond is the first corporate bond to
be admitted on the FMDQ platform following the approval of the FMDQ Bond
Listing and Quotation Rules by the Securities and Exchange Commission (SEC) in
December last year.
listing of the N30.5 billion 7-year tenor bond is the first corporate bond to
be admitted on the FMDQ platform following the approval of the FMDQ Bond
Listing and Quotation Rules by the Securities and Exchange Commission (SEC) in
December last year.
UBA
decided to list the Bond on both the FMDQ-OTC and the NSE to ensure adequate
liquidity for investors.
decided to list the Bond on both the FMDQ-OTC and the NSE to ensure adequate
liquidity for investors.
The
FMDQ-OTC will serve the liquidity need of institutional investors, being the
most liquid platform for fixed income instruments in the Nigerian capital
market.
FMDQ-OTC will serve the liquidity need of institutional investors, being the
most liquid platform for fixed income instruments in the Nigerian capital
market.
The
listing on the FMDQ-OTC platform will also avail foreign investors the
opportunity to participate in the Nigerian corporate bond market, through
investment grade Notes, such as UBA Bond Series 3.
listing on the FMDQ-OTC platform will also avail foreign investors the
opportunity to participate in the Nigerian corporate bond market, through
investment grade Notes, such as UBA Bond Series 3.
In
addition, the listing of the bonds on the NSE provides an opportunity for
retail investors to take advantage of the fixed return on these investment
grade Notes, through the secondary market.
addition, the listing of the bonds on the NSE provides an opportunity for
retail investors to take advantage of the fixed return on these investment
grade Notes, through the secondary market.
Also,
the N30.5 Billion Tier-II capital further boosts the capitalization of UBA and
reinforces its growth potential.
the N30.5 Billion Tier-II capital further boosts the capitalization of UBA and
reinforces its growth potential.
Being
a relatively long term fund, the proceeds from the Bond deepens UBA’s long
tenored funding base and enhances the appetite and ability of UBA to support
the real sector of the Nigerian economy, through responsible and sustainable
lending.
a relatively long term fund, the proceeds from the Bond deepens UBA’s long
tenored funding base and enhances the appetite and ability of UBA to support
the real sector of the Nigerian economy, through responsible and sustainable
lending.
The
UBA bond listing was sponsored by issuing and financial advisory firm, United
Capital Plc.
UBA bond listing was sponsored by issuing and financial advisory firm, United
Capital Plc.
The
UBA Group is a highly diversified financial services provider and one of the
largest financial institutions in Africa, with presence in New York, Paris and
London.
UBA Group is a highly diversified financial services provider and one of the
largest financial institutions in Africa, with presence in New York, Paris and
London.
UBA
has a strong retail penetration across the African continent where it controls
significant market share. Over eight million customers enjoy the bank’s robust
bouquet of products and services, tailored to meet their financial needs.
has a strong retail penetration across the African continent where it controls
significant market share. Over eight million customers enjoy the bank’s robust
bouquet of products and services, tailored to meet their financial needs.
