UBA plans to raise funds from international market

United Bank for Africa is planning to issue a $500 million Eurobond at the end of this year or early next year to finance its foreign currency assets and expansion in Africa, Chief Executive Phillips Oduoza has disclosed. UBA, one of Nigeria’s top four banks, issued a N35 billion bond last year and a N20 billion bond in 2010 as part of a N400 billion debt issuance programme.
Last month, it suspended a share sale citing weak local market conditions and Uduoza said the bank wanted to complete the capital raising before proceeding with the Eurobond. “We will probably do that last quarter of this year or early next year,” he told Reuters on the sidelines of a conference in London. We’re looking at about $500 million. We’re still at the discussion stage. We haven’t appointed parties. What we want is to do our equity capital raising before the Eurobond and that depends on market conditions.” The bond would have a tenor of between five and seven years, he added.