The United Bank for Africa on Wednesday announced their redemption of its debut $500 million five-year Eurobond notes which matured on Wednesday, June 8, 2022.
The name UBA is not a strange name in the banking sector, and as one of the largest banks in Africa with presence in 20 African countries and with its reach extending to some European shores such as France and the United Kingdom, its presence is noted and their major strides have become standards for many banks to follow.
The bond was offered at a coupon rate of 7.75%, when it was issued in 2017. The bond was raised to support the bank’s business in key sectors of the economy.
In November 2021, UBA repurchased $310.9 million of the notes, and the outstanding portion of $189.1 million and the coupon of $7.3 million have now been redeemed by the bank.
Speaking concerning this Mr. Kennedy Uzoka, GMD/CEO of UBA said “The development is a testament to UBA’s robust and prudent liquidity management strategies, coupled with a very strong and diversified asset and liability management process. This, in spite of macroeconomic headwinds underpinned by FX liquidity, double-digit inflation and currency devaluation.”
He further said “Our huge customer base, diversified geographical spread and uncommon multiple decades of proven track record, continue to spotlight UBA as the preferred destination for investors, individuals and businesses alike.”
