Nigeria-based investment management company United Capital Plc has raised ₦10 billion in its Series 1 Bond issuance, the first by an investment bank in the history of the Nigerian capital market.
The Corporate Bond, issued under a ₦50 billion Medium-Term Debt Programme registered with the Securities & Exchange Commission, is in line with its organizational objectives for the year 2020. The bond issuance opened on Monday, May 4, closed on Friday, May 15, 2020, and was oversubscribed by 24 percent, the company said in a statement on the Nigerian Stock Exchange.
Being a first for any Issuing House in the history of the Nigerian market, the capital raise solidifies United Capital’s performance track record as a formidable ally in the investment banking industry, said Group CEO Peter Ashade.
“With an oversubscription of 24 percent 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,” Ashade said.
United Capital served as a joint issuing house/book-runner on the deal, advising on the transaction structure, securing relevant regulatory approvals, and implementing a marketing strategy for the bonds including market timing, investor roadshow, and crafting an appropriate and compelling business case for the issuance.
“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,” said Babatunde Obaniyi, United Capital’s Managing Director for Investment Banking.
The transaction, which has a tenor of 5 years, recorded a 124 percent subscription in total, 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 Capital Plc, and a testament to the leading role United Capital continues to play in the financial services space,” Obaniyi adds.