UBA Lists N30.5bn Bond Issue on NSE, FMDQ

The United Bank for Africa (UBA) Plc’s N30.5 billion bond has been listed on the Nigerian STOCK EXCHANGE (NSE) and the Financial Market Dealers Quotation, over-the-counter (FMDQ-OTC) market.  The dual listing was done in Lagos on Wednesday.

Listing on the NSE provides opportunity for retail investors to take advantage of the fixed return on the investment grade notes, through the primary market while listing on the FMDQ provides a secondary market platform for institutional and foreign investors to trade the UBA Bond.

The UBA Bond is the first corporate bond to be admitted on the FMDQ platform and the first of its kind on a fixed income OTC in Africa.

Speaking at the event, the Chief Executive Officer, FMDQ-OTC Mr. Bola Onadele Koko, commended UBA for being a pioneer in the market and reiterated the FMDQ’s commitment to the development of the Nigerian financial markets, through its efficient platform for the registration, listing, quotation and valuation of bonds.

He said the benefits of listing on FMDQ include “global visibility and transparency, improved secondary market liquidity, price formation and benchmark pricing thus resulting to a more globally competitive capital market.”

UBA, in December 2014, successfully raised N30.5 billion Tier II capital through the issuance of seven-year fixed rate unsecured notes, maturing in 2021.

“The bond issue was the biggest and most successful in 2014. The success recorded at a time of uncertainty in the capital market was largely due to the credibility and strength of the UBA brand,” the Group chief executive officer, United Capital Plc and Issuer to the bond, Mrs. Oluwatoyin Sanni said.

On his part, the Group Managing Director/Chief Executive Officer, United Bank for Africa (UBA) Plc, Mr. Phillips Oduoza, expressed delight that the UBA Bond is the first to list on the FMDQ.

“We were the first Nigerian bank to do an Initial Public Offering (IPO) on the NSE after successfully listing in 1971. We were also the first to issue Global Depository Receipts (GDR) in 1998. We are always willing to explore new frontiers in our quest to have an efficient market that meets our developmental needs,” Oduoza added.

The UBA Group is a diversified financial services provider and one of the largest financial institutions in Africa, with presence in New York, Paris and London.

“We will utilise the proceeds of the Bond issue for long term commercial and retail sector lending as well as the expansion of our delivery channels to provide efficient banking services to our customers,” the UBA boss further stated, adding that the bank is committed to building a long term and sustainable business that would ensure proper utilisation of the bond issue so as to grow its market share and profitability.

Source: Thisday Newspaper, Nigeria