Finance and investment experts have commended the United Bank for Africa (UBA) Plc for the prompt redemption of its $500 million 5-yr Eurobond notes.
They additionally expressed optimism that the move would boost investors’ confidence in Africa’s Global Bank.
These views were expressed by Mr. George Akindero, an Investment Analyst, and Mrs. Bridget George, a Finance and Banking Consultant in separate interviews with THEWILL.
According to Akindero, the step taken by means of the financial institution suggests that the management is focused and is not joking about the image of the Bank.
“Eurobond is a global exposure that no business enterprise should comic story about. By redeeming the instrument, the bank has shown an example in properly corporate management and it will endear traders to it as a financial institution that is centered”, Akindero stated.
He also added that the Eurobond transaction is a very sensitive one due to the fact it is able to ruin an employer if it isn’t properly managed, specially for a reputable monetary enterprise with many offshore subsidiaries.
George praised the management of UBA for the effective and efficient utilization of the proceeds of the Eurobond. She also discovered that Eurobond has implications for the country Because it showcases Nigeria to the rest of the world.
“When you cross into Eurobond, you are exposing your country to the outdoor global because it suggests how reliable your commercial enterprise environment is. Though it’s miles one of the most secured funding home windows, if your country investment or enterprise climate is unsuitable, no person buys into your Eurobond,” George advised.
The Finance and Banking professional said that the pan-African fame of UBA helped in boosting its image and earning it the desired degree of confidence that draws the attention of investors. “With many subsidiaries outside Nigeria, it is simple for investors to buy into your instrument.”
UBA these days redeemed its debut $500 million 5-yr Eurobond notes with the maturity date of June 8, 2022. Issued in 2017, the 5-yr bond turned into presented at a discount fee of 7.75% and raised to aid the Bank’s business in key sectors of the economy.
The Pan-African financial institution issued the 5-yr bond at a discount rate of 7.75% and, in November 2021, repurchased $310.9 Million of the notes through a cash tender offer.
As part of UBA’s liability control strategies, in November 2021, the financial institution repurchased $310.9 million of the notes via a cash gentle offer. Upon maturity of the Eurobond, the great portion of $189.1 million and the coupon of $7.Three million have been redeemed via the financial institution.