UBA set to redeem $500m bonds – Vanguard

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By Nkiruka Nnorom

United Bank for Africa (UBA) Plc said it is set to redeem its outstanding $500 million bonds.

The bond, which matures in 2022, has a 7.750 percent coupon rate.

The bank also stated that it is set to offer a 5-year fixed rate Senior Unsecured offering under its Global Medium Term Note Programme subject to market conditions.

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The bank stated this in a notice to the Nigerian Exchange Limited (NGX), titled “United Bank for Africa Plc Senior Unsecured Note Issuance with a 5-Year Maturity”.

  The bank further stated that it would announce a cash Tender offer for all its outstanding Tenders, even as it appointed Citigroup Global Markets Limited, Mashreqbank psc, Renaissance Securities (Cyprus) Limited, and Standard Chartered Bank as dealer managers for the Tender Offer.

The notice reads: “United Bank for Africa Plc hereby notifies the Nigerian Exchange Limited that it has mandated Citigroup Global Markets Limited, Mashreqbank psc, Renaissance Securities (Cyprus) Limited, Standard Chartered Bank, and United Capital Plc as Joint Lead Managers to arrange a global investor call in addition to a series of fixed income investor meetings (each of which will not constitute a public offer in Nigeria) commencing on November 8, 2021.

“A 5-year fixed rate benchmark USD denominated Regulation S/144A Senior Unsecured offering under UBA’s Global Medium Term Note Programme may follow, subject to market conditions.

“In connection with the new bond offering, UBA proposes to redeem its outstanding US$500mn 7.750% 2022 bonds and will announce today a cash tender offer for any and all of the outstanding bonds.”