United Capital Plc has become the first Issuing House to issue a Corporate Bond in the history of the Nigerian Capital market after successfully raising N10 billion in its Series 1 Bond issuance under a N50 billion Medium-Term Debt Programme registered with the Securities and Exchange Commission (SEC).
The fundraising, which was part of United Capital's plan for the year, was oversubscribed by 24% investor orders within the opening period, which was May 4, 2020 and closing period which was on Friday, May 15, 2020, a statement from United Capital published on Nigerian Stock Exchange (NSE) and seen by AllNews, disclosed.
While reacting to the fundraising, the Group Chief Executive Officer of United Capital Plc, Peter Ashade, said, “the bond issuance, which signifies the first by any Investment Bank in the history of the Nigerian Capital market solidifies our performance track record as a formidable ally in the Investment Banking industry. With an oversubscription by 24% investor orders, we believe this milestone accentuates the confidence in our Institution, and its ability to diversify our corporate funding sources, provide innovative financial solutions and our unwavering commitment to our esteemed clients”.
Also speaking on the United Capital bond, Babatunde Obaniyi, the Managing Director, Investment Banking, stated that “The bond issuance adds to the impressive portfolio of innovative and landmark transactions we have structured, and once again highlights our capabilities in the successful execution of novel debt capital market transactions. As a Joint Issuing house/book runner on the deal, the Company advised on the transaction structure, securing regulatory approvals and marketing strategy for the bonds including market timing, investor roadshow, and crafting an appropriate and compelling business case for the issuance.”
Obaniyi added that “The transaction, which has a tenor of 5years, recorded a 124% subscription, with huge commitments from a diversified institutional investors base including pension Fund Administrators and other players in the financial service space. This very strong outcome further affirms buy-side investors’ confidence in United CapitalPlc, and a testament to the leading role United Capital continues to play in the financial services space” he said
About United Capital
United Capital was founded over 50 years ago. The company utilises technology offers financial services in Investment Banking, Asset Management, Trusteeship, Securities Trading, Wealth Management and Consumer finance through technology.