Tag: United Bank for Africa Plc

United Bank for Africa Plc (UBA) has announced plans to issue a 5-year Fixed Rate Senior Unsecured Note, as part of its global medium term note programme.

To facilitate the issuance of the 5-year unsecured note whose value is yet to be ascertained as at the period of reporting this, the financial giant stated that a series of global investor and fixed income investor calls will be held from today, 8th of November, 2021. The calls will be organized by the joint lead managers of the offer, namely: Citigroup Global Markets Limited, Mashreqbank psc, Renaissance Securities (Cyprus) Limited, Standard Chartered Bank and United Capital Plc.

This is according to a notice signed by the Group’s Secretary, Bili Odum, and filed with the Nigerian Exchange Limited (NGX).

The net proceeds that will be generated from the proposed 5-year fixed rate benchmark USD-denominated Regulation S/144A Senior Unsecured offering is most likely to complement the lender’s stable funding base and support the growth of its balance sheet and overall business.

In addition, the tier-1 bank proposed to redeem its outstanding $500 million Eurobond due June 2022, issued at a coupon rate of 7.75%. Consequently, the bank is expected to announce a cash tender offer for all of the outstanding bonds today. Citigroup Global Markets Limited, Mashreqbank psc, Renaissance Securities (Cyprus) Limited, and Standard Chartered Bank are dealer managers for the Tender Offer.

Recall that UBA had in 2017 issued its debut $500 million Eurobond which was oversubscribed by 240%. The offer attracted investors around the world, including the United Kingdom, Asia, the Middle East, Europe and the United States. The bond was listed on the Irish Stock Exchange.

It is imperative to note that Nigerian banks have been leveraging on the international debt market to boost their capital buffers amidst tight FX liquidity and the country’s macroeconomic challenges.  Similarly, recall that Fidelity Bank had recently announced plans to raise about $500m from the international debt capital market through the issuance of 5-Year unsecured notes. The firm intends to list the Notes on the Irish Stock Exchange, with the expectation that the Notes will be traded on its regulated market.

In its 2021 9M financial results, UBA reported that its profit after tax grew by about 36% to N104.6 billion. Its net interest income marginally grew by 1.7% to N229.3 billion, while deposits from customers grew to N6.08 trillion during the period.

As of press time, UBA is currently trading N8.50 per share on the floor of the Nigerian Exchange Limited (NGX).

United Bank for Africa Plc (UBA) has declared an interim dividend of N0.20 for every ordinary share of 50 kobo each, for the financial period ended June 30, 2021. The declared dividend is to be paid on all the 34,199,421,368 issued ordinary shares of the bank, amounting to N6.84 billion.

In a statement signed by its secretary, Bili Odum, the financial giant noted that the dividend will be paid electronically on Thursday, September 30, 2021, to shareholders whose names appear on the Register of Members as at Thursday, September 23, 2021, and to those who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their Bank accounts.

While the Register of Shareholders will be closed on Friday, September 24, 2021, Qualification Date has been scheduled for Thursday, September 23, 2021.

It is worthy to note that the declared interim dividend of 20kobo per share is about 17.6% higher than the amount declared in the corresponding period of last year (HY 2020: 17 kobo). This increase might be attributed to a much improved financial performance reported by the bank during the just concluded half-year period.

HY 2021 Highlights

Recall that the lender had recently recorded a double digit surge in most of its key financial metrics for the recently concluded half year period. For example, its Net interest income after impairment, Net fee and commission income and profit after tax all grew by 29.1%, 18.6% and 36.3% respectively.

UBA closed trading today 9th of September, 2021 with a share price of N7.85 per share on the floor of the Nigerian Exchange Limited (NGX).

United Bank for Africa (UBA) Plc has announced that its board of directors would meet on Thursday, August 12, 2021 to consider among other things, the company’s audited Financial Statements for the half year period ended 30th of June, 2021.

Consequently, the firm also announced that it would observe its closed period from July 1, 2021 until 24 hours after the half year accounts are filed with the Nigerian Exchange Group Limited.

This is according to a disclosure signed by the Bank’s secretary, Bili Odum and sent to the Nigerian Exchange Group Limited (NGX).

Accordingly, the announcement of a closed period is in line with Rule 17.18(a) (Closed Period Rules) of the NGX’s Rule Book (2015). During this period, individuals with sensitive information about stock performance such as; Directors, managers, employees, consultants and their connected persons, are prohibited from trading in the shares of the bank either directly or indirectly.

What you should know:

• UBA Plc had earlier reported a 27% increase in its profit after tax figures for the first quarter of the year (Q1, 2021). During the aforementioned period, the bank posted a PAT of N38.16 billion.
• The bank closed trading for the week ended 23rd of July, 2021 with a share price of N7.85.

For more information about the board meeting, click HERE.

Caroline Anyanwu, a Non-Executive Director of United Bank for Africa has increased her stakes in the leading Pan-African Bank with the purchase of 500,000 additional shares of the bank.

This is according to a Notification of Share Dealing by an Insider, signed by the company secretary, Mr. Bili A. Odum, and published on the website of the Nigerian Exchange Group Limited (NGX)

According to the notice, the Non-Executive Director increased her stakes in UBA with the acquisition of 500,000 additional shares of the bank at N7.65 per share, on the floor of the Nigerian Exchange Limited on 8th July 2021. This puts the total consideration for the shares purchased by Anyanwu at N3, 825,000.

It is imperative to note that dealings by insiders of listed companies are corporate actions that are required to be disclosed by the management of the company. In this light, the disclosure is in compliance with The Exchange’s prespecified policy, and will help to cement the Director’s position as one of the substantial shareholders of the banking giants.

For more information about the recent disclosure, click HERE.