Nigeria’s first domestic USD bond sets new milestone as United Capital raises $900m
Nigeria’s premier financial services institution, United Capital Group, has demonstrated its expertise in the capital markets by leading the issuance of the Federal Government’s Domestic US Dollar Bond.
The bond, which raised over $900 million with a 180 per cent subscription rate, marks a historic milestone as Nigeria’s first-ever domestic USD-denominated bond.
The overwhelming demand for the bond reflects investor confidence in the country’s economic stability and growth prospects and United Capital’s ability to drive innovative financial solutions in challenging markets.
In a statement sent to PUNCH Online on Monday, the Group said the issuance was set to have a transformative impact on Nigeria’s economy, as the proceeds are earmarked for key infrastructural development projects.
“The bond’s success underscores the growing appetite for domestic investment opportunities and the faith in Nigeria’s future as a hub for economic growth. By spearheading this landmark transaction, United Capital continues to solidify its position as a leader in Africa’s financial markets, contributing to the nation’s progress through strategic capital mobilization”, the Group said.
While commenting on the issuance’s success, the Managing Director, Investment Banking at United Capital Group, Dr. Gbadebo Adenrele, said, “This is a landmark moment for Nigeria’s capital market. As a pioneer in this class of transactions, United Capital has laid the foundation for more significant capital raises by the Nigerian Government, other African sovereigns, and major corporate issuers. The success of the Domestic FGN US Dollar bond is a testament to investor confidence in the country’s economic trajectory and our innovative approach to finance.”
Similarly, the Group CEO of United Capital Group, Peter Ashade, emphasised the firm’s role in advancing Africa’s capital markets.
He said, “The successful issuance of Nigeria’s inaugural Domestic FGN US Dollar bond is a major milestone for both the country and United Capital. This transaction aligns perfectly with our 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.”
In addition to United Capital’s role as Lead Issuing House and Coordinator for domestic bond issuance, Africa Finance Corporation acted as the Global Coordinator.
Other key players in the transaction include Meristem Capital Limited, Stanbic IBTC Capital Limited, and Vetiva Advisory Services Limited, which served as Issuing Houses. Constant Capital Markets & Securities Limited and Iron Global Markets Limited acted as Financial Advisers, while Olaniwun Ajayi LP and G. Elias served as Solicitors. Greenwich Trustees Limited acted as a Trustee.
United Capital Group’s pivotal role in this landmark transaction reinforces its capacity to lead and manage significant capital market activities. Recent achievements such as the listing by the introduction of Transcorp Power Plc on the Nigerian Exchange Limited and the issuance of Sierra Leone’s first local currency corporate bond further solidify its reputation as a leader in Africa’s financial landscape.
