UBA Capital, the investment banking and asset management division of United Bank for Africa (UBA) Plc, led other financial institutions to raise N18.5bn for Imo State government to help meet its developmental goals. The issue was the second largest State debt financing in the Nigerian capital markets this year and a clear signal of the depth of investor demand and UBA Capital’s leading role in African capital markets.
UBA Capital acted as Lead Issuer. The other issuing houses involved in the transaction were Stanbic IBTC, Future View Financial Services Limited and BGL Securities Limited. The N18.5billion bond issue is Series 1 of a N40billion Medium Term bond issuance program of the State. The bond which was fully underwritten opened and closed on Tuesday June 30, 2009. It was issued at Par with a Fixed Rate coupon of 15.5% payable semi-annually. The bond is amortizing, tax exempt and backed by an Irrevocable Standing Payment Order (“ISPO”) on the Federal Allocation of Imo State and will mature in 2016.
“As one of Africa’s leading financial services institution, UBA is well positioned, given its balance sheet strength, distribution capability and intimate knowledge of the African markets, to act as a growth catalyst in the region, through funding initiatives of this nature. In line with our vision to be the Africa’s Global Bank, we will continue to partner public and private sectors to assist them to achieve their financial needs in line with our commitment towards supporting the developmental aspirations of Africans and Africa related businesses” said the Deputy Managing Director, UBA, Mr. Phillips Oduoza, during the completion Board Meeting.
Proceeds of the bond financing will be used to finance capital developments in the state. Specifically, the rehabilitation of water projects, rehabilitation and construction of roads and financing the state equity investment in Imo Wonder Lake and Conference Centre Oguta are some of the beneficiary projects listed by Governor of Imo State, Chief Ikedi Ohakim.
Amadou Hott, CEO UBA Capital, reaffirmed the Governor’s position saying that “This is a great achievement for Imo State and UBA Capital looks forward to replicating such landmark transactions in other States of Nigeria and the rest of sub Saharan Africa. This is yet again evidence that African capital markets are open for business and that African institutions are in pole position to meet the financing requirements of their African clients.”
Notes for Editors:
United Bank for Africa Plc is one of Africa’s leading financial institutions offering universal banking to more than 7 million customers, with assets in excess of USD 19bn, over 750 branches in 10 African countries as of 30 June 2009, together with a presence in New York, London and Paris.
Contact: Charles Aigbe - +234 8025010901 email. [email protected] Or Lillian Mbayiwa Tel 234-703-414-4850 email [email protected]
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