The United Capital Group on Monday said it had proved its worth as the lead Issuing House and Coordinator for the successful issuance of the FGN
By Rukayat AdeyemiL
The United Capital Group on Monday said it had proved its worth as the lead Issuing House and Coordinator for the successful issuance of the FGN Domestic Dollar-Denominated Bond.’
Dr Gbadebo Adenrele, Managing Director, Investment Banking, United Capital Group, said this in a statement made available in Lagos.
He said the successful issuance of the bond was a landmark moment for Nigeria’s capital market.
The News Agency of Nigeria (NAN) reports that the FGN Domestic Dollar Bond is Nigeria’s first ever domestic U.S. dollar-denominated bond.
The transaction generated unprecedented domestic demand, raising over 900 million dollars and achieving more than 180 per cent subscription levels.
Adenrele said that the feat validated United Capital’s placing power in the capital markets and strong investor confidence in Nigeria’s economic stability and growth potential.
He said: “This first issuance under the domestic FGN U.S dollar bond programme offers a 9.75 per cent yield and attracted significant demand from diverse group of investors.
“Which included Nigerians, non-Nigerians residing in Nigeria, Nigerians in Diaspora and institutional investors.
“The bond will be listed on the Nigerian Exchange Ltd. (NGX) and FMDQ Securities Exchange Ltd. (FMDQ Exchange).
“The proceeds from the bond will be deployed to critical sectors of the economy, as part of ongoing efforts to sustain growth and address key infrastructure gaps.
According to him, as a pioneer in the class of transactions, United Capital has laid the foundation for more of such significant capital raises by the Nigerian Government, other African sovereigns and major corporate issuers.
Adenrele added that the successful issuance of the bond was a testament to investor confidence in the country’s economic growth trajectory and the issuer’s innovative approach to finance.
The Group CEO, United Capital Group, Mr Peter Ashade, also emphasised the issuer’s commitment to developing Africa’s capital markets.
Ashade noted that the successful issuance of Nigeria’s inaugural domestic FGN U.S dollar bond was a significant milestone for both the country and the issuer.
He stated that the transaction aligned perfectly with the issuer’s vision of transforming the African financial landscape.
“By providing access to innovative investment opportunities, we are empowering investors and contributing to Nigeria’s economic growth.
“United Capital Group’s pivotal role in this transaction highlights its capacity to lead and manage significant capital market activities.
“This was recently demonstrated with the listing by introduction of Transcorp Power Plc on the NGX and the issuance of Sierra Leone’s first local currency corporate bond, reinforcing its reputation in Africa’s financial landscape,” Ashade said.
NAN reports that alongside United Capital as the lead Issuing House/Coordinator for the domestic bond issuance, Africa Finance Corporation served as the Global Coordinator.
Meristem Capital Ltd., Stanbic IBTC Capital Ltd., and Vetiva Advisory Services Ltd. acted as Issuing Houses.
Also, Constant Capital Markets and Securities Ltd., and Iron Global Markets Ltd., acted as Financial Advisers.
Olaniwun Ajayi LP and G. Elias acted as Solicitors, while Greenwich Trustees Ltd., acted as Trustees.
United Capital, a player in the financial and investment services space, is listed on the NGX to offer complimentary suite of service offerings, investment banking, asset management, trusteeship, securities trading, among others.
The group seeks to transform the African continent by providing innovative and creative investment solutions to governments, companies and individuals. (NAN)
