UBA Redeems $500m 5-year Eurobond

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

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

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.

In his comments following the redemption of the bond yesterday, the managing director and chief executive of the bank, Kennedy Uzoka said “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. 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,” Uzoka continued.

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.