UBA Redeems $500m 5-year Eurobond

The United Bank for Africa (UBA) yesterday redeemed its debut $500 million 5-year Eurobond notes with maturity date of June 8, 2022.

Issued in 2017, the five-year bond was offered at a coupon rate of 7.75%, and raised to support the bank’s business in key sectors of the economy.

According to a statement yesterday, as part of UBA’s liability management strategies, in November 2021, the bank repurchased $310.9 million of the notes through a cash tender offer.

Upon maturity of the Eurobond, the outstanding portion of $189.1 million and the coupon of $7.3 million were redeemed by the bank.

“The development is a testament to UBA’s robust and prudent liquidity management strategies, coupled with a very strong and diversified asset and liability management process.

“This, in spite of macroeconomic headwinds underpinned by FX illiquidity, double-digit inflation and currency devaluation,” the Group Managing Director/Chief Executive Officer of UBA, Kennedy Uzoka said.

“Our huge customer base, diversified geographical spread and uncommon multiple decades of proven track record, continue to spotlight UBA as the preferred destination for investors, individuals and businesses alike,” added.

With presence in 20 African countries, including Nigeria, as well established operations in France, the United Kingdom (UK) and the only sub-Saharan African bank with a deposit-taking licence in the United States of America (USA), UBA is a renowned financial institution providing banking and financial services to over 33 million customers across the globe.