2 months ago
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United Capital Group has announced that Nigeria’s first domestic dollar-denominated bond, for which it acted as the lead issuing house and coordinator, has reflected strong investor confidence in the country’s economy.
It stated that domestic dollar-denominated bond, for which it served as the lead issuing house and coordinator, achieved over 180 per cent subscription and raised more than $900m.
In a statement made available to our correspondent on Monday, the firm noted that the bond, which had a 9.75 per cent coupon rate, attracted demand from Nigerian and foreign investors residing in the country, Nigerians in the diaspora, and institutional investors.
United Capital stated that the bond would be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange Limited and the proceeds would support critical sectors of the Nigerian economy and help address the country’s infrastructure needs.
Commenting on the achievement, the Managing Director, Investment Banking at United Capital Group, Gbadebo Adenrele, described the issuance as a milestone for Nigeria’s capital market.
“United Capital has pioneered this transaction, laying the foundation for future capital raises by the Nigerian Government, African sovereigns, and major corporate issuers. The success of this bond reflects investor confidence in Nigeria’s economic trajectory and our innovative financial approach,” he said.
The Group CEO of United Capital, Peter Ashade, also emphasised the firm’s commitment to Africa’s capital markets.
“This historic issuance aligns with our vision to transform the African financial landscape by providing innovative investment opportunities. By doing so, we are empowering investors and contributing to Nigeria’s economic growth,” he remarked.
It added that other firms participated in the transaction, including Africa Finance Corporation as global coordinator; Meristem Capital Limited, Stanbic IBTC Capital Limited, and Vetiva Advisory Services Limited as issuing houses.
It added that financial advisers were Constant Capital Markets & Securities Limited and Iron Global Markets Limited, while legal advisory roles were handled by Olaniwun Ajayi and G. Elias. Greenwich Trustees Limited acted as a trustee.
