United Bank for Africa Plc, a pan-African financial services group with headquarters in Lagos and also known as Africa’s Global Bank, redeemed its $500 million 5-year Eurobond notes on June 8th, 2022.
The investment bonds with a maturity of five years and a coupon rate of 7.75 percent were issued in 2017.
More About The Eurobond Note
A cash tender offer was used in November 2021 by the Group to repurchase $310.9 million worth of the notes. This action was part of the liability management strategy implemented by UBA. Both the outstanding part, which was $189.1 million, and the coupon, which was $7.3 million, were paid when the bond matured.
Read Also : Talk360 obtains $4 million to establish an African payment platform and develop its calling business.
Kennedy Uzoka, GMD/CEO of UBA said “The Group’s selective participation in international debt markets is a testament to UBA’s robust and prudent liquidity management strategies, coupled with a very strong and diversified asset and liability management process.”
Uzoka added, “Our significant customer base, diversified geographical spread, and multiple decades of proven track record, continue to ensure that UBA is the preferred destination for investors, individuals, and businesses alike”.
Observations
UBA is a leading African financial institution that provides banking and financial services to over 33 million customers all over the world. It has a presence in 20 African countries, one of which is Nigeria, as well as operations in France and the United Kingdom, and it is the only sub-Saharan African bank that has a deposit-taking license in the United States. This makes it the only bank in Africa that falls into this category.