June 09, (THEWILL) – Africa’s Global Bank, United Bank for Africa (UBA) Plc, has redeemed its debut $500 million 5-year Eurobond notes with the maturity date of June 8, 2022.
Issued in 2017, the five-year bond was offered at a coupon rate of 7.75 percent, and raised to support the Bank’s business in key sectors of the economy
As part of UBA’s liability management strategies, in November 2021, the bank repurchased $310.9 million of the notes through a cash tender offer.
Upon maturity of the Eurobond, the outstanding portion of $189.1 million and the coupon of $7.3 million were redeemed by the bank.
“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 illiquidity, double-digit inflation and currency devaluation.
“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,” said Kennedy Uzoka, GMD/CEO of UBA.
With presence in 20 African countries, including Nigeria, as well as established operations in France, the United Kingdom (UK) and the only sub-Saharan African bank with a deposit-taking licence in the United States of America (USA), UBA is a renowned financial institution providing banking and financial services to over 33 million customers across the globe.
The pan-African bank issued the five-year bond at a coupon rate of 7.75% and, in November 2021, repurchased $310.9 million of the notes through a cash tender offer.
UBA reported a net profit of N41.50 billion for its Q1 2022 operations, reflecting an 8.76 percent growth year on year.
Earnings per share for the period was reported as N1.14, a 9.62 percent increase from the N1.04 reported a year earlier in 2021.
The report revealed that in Q1 2022, Net interest income grew by 14.10 percent from N74.38 billion to N84.87 billion in the current period.
UBA’s profit performance is on the back of all margin growth as income from interest, trading income and fees and commission income all appreciated year on year.
