Table of Contents
Key Points
• United Capital's $900-million bond was oversubscribed by 180 percent.
• The bond attracted Nigerian, diaspora, and institutional investors.
• Proceeds will support key sectors and infrastructure in Nigeria.
United Capital Group, led by CEO Peter Ashade, has made a groundbreaking announcement regarding Nigeria’s first domestic dollar-denominated bond, which was oversubscribed by more than 180 percent. The company, acting as the lead issuing house and coordinator, successfully raised more than $900 million through the bond issuance, marking a significant milestone for the Nigerian economy. This oversubscription is seen as a strong indicator of investor confidence, reflecting both local and international interest in the country’s economic outlook. The bond, which carries a coupon rate of 9.75 percent, garnered attention from a wide range of investors, including Nigerian and foreign investors based in the country, as well as Nigerians in the diaspora and institutional players.
Boost to Nigeria's infrastructure and capital market
United Capital stated that the proceeds from the bond issuance would be channeled toward key sectors of Nigeria's economy, particularly those related to infrastructure development. Furthermore, the bond is set to be listed on both the Nigerian Exchange Limited (NGX) and FMDQ Securities Exchange Limited, making it accessible for secondary market trading and providing greater liquidity for investors. Gbadebo Adenrele, Managing Director of Investment Banking at United Capital, described the success of the bond as a pivotal moment 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,” Adenrele stated.
United Capital strengthens its leadership in African financial markets
Peter Ashade, Group CEO of United Capital, expressed his pride in leading a firm that is playing a transformative role in 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,” Ashade remarked. The bond issuance saw participation from several key players, including Africa Finance Corporation, which acted as the global coordinator. Issuing houses included Meristem Capital Limited, Stanbic IBTC Capital Limited, and Vetiva Advisory Services Limited. Financial advisers for the transaction were Constant Capital Markets & Securities Limited and Iron Global Markets Limited, while legal advisory roles were fulfilled by Olaniwun Ajayi and G. Elias. Greenwich Trustees Limited served as the trustee for the bond. The oversubscription of this bond highlights the strong appetite for Nigerian investments, even amid global economic uncertainties, positioning the country as an attractive destination for future financial transactions.
