Date Published: 07/02/09
UBA Capital, others, raise N18.5 billion for Imo State government
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. |