Ardova Plc, a Nigerian leading indigenous and integrated energy company involved in the distribution of petroleum products, announced it has established a N60 billion bond programme.
The company also announced the successful issuance of N11,444,000,000 7-year 13.3 percent fixed-rate bonds and N13,856,000,000 10-year 13.65 percent fixed-rate bonds under the programme.
Ardova disclosed this in a statement signed by Oladeinde Nelson-Cole, Company Secretary/General Counsel.
It said “Ardova PLC is pleased to announce the establishment of its ₦60,000,000,000 (Sixty Billion Naira) bond issuance programme (the “Programme”) and the successful issuance of ₦11,444,000,000 (Eleven Billion, Four Hundred and Forty-Four Million Naira) 7-year 13.3% fixed rate bonds and ₦13,856,000,000 (Thirteen Billion, Eight Hundred and Fifty-Six Million Naira) 10-year 13.65% fixed rate bonds being tranches A and B respectively of the series 1 bonds under the Programme.”
The bonds are duly registered with the Securities and Exchange Commission. An application will be made to list the Bonds on the FMDQ Securities Exchange Limited.
Vetiva Capital Management Limited and Stanbic IBTC Capital Limited acted as Joint Issuing Houses, whilst Banwo & Ighodalo acted as Transaction Counsel. The trustees were advised by Aluko & Oyebode.
Commenting on the transaction, Mr. Olumide Adeosun, CEO of the Company said: “We are pleased with the successful conclusion of this transaction which again demonstrates investors’ confidence in the Company and provides additional resources for the Company to continue its expansion projects.”
Lagos State’s Series IV N125 Billion Bond Opens for Subscription
Lagos State Government has declared open it’s series IV N125 Billion bond under the state’s N500 Billion Bond Issuance Programme.
The subscription is scheduled to close at 2.00 pm on Wednesday, December 1, 2021, stated Coronation Merchant Bank Limited in an email forwarded to investors.
The email reads, “Coronation Merchant Bank Limited is pleased to announce that the Lagos State Government Series IV Bond of up to
N125 Billion under the State’s N500 Billion Bond Issuance Programme is now open for subscription. The offer is scheduled to close at 2.00pm on Wednesday, December 1, 2021.”
Please see indicative terms of the offer below:
- Series IV Bond Pricing Supplement
- Series IV Trust Deed
- The Series IV Bond Rating Report by Agusto & Co and Global Credit Rating Co.
- The Issuer’s Rating Report by Agusto and GCR
- The Issuer’s PENCOM Clearance Letter
- Commitment Form
- Eligible Individual Investor (EII) Form
For further enquiries, kindly reach out to any of the contacts below:
150bn FG Bonds for Auction in November
The Debt Management Office (DMO), the government agency that coordinates the management of Nigeria’s debt, has said that Federal government N150bn bonds will be up for subscription this month.
In a circular available on the website of the Debt management agency, the bonds are to be auctioned on November 17 while the settlement date was set for November 19.
The Federal Agency had on September 17 announced the Federal government plans for Eurobond issuance in the international capital market (ICM). The issuance, as announced in September, was to avail local investors of the opportunity to invest.
Almost a month after, the federal government is up with N150 billion bonds. The bonds are broken into three with each worth N50bn.
A further breakdown available in the circular by DMO showed that the bonds are a 10-year re-opening bond offered at the rate of 12.50 percent and is to mature in January 2026. There is the 20-years re-opening bond to be offered at 16.2499 percent and will mature in April 2037. There is also a 30-year re-opening bond to be offered at 12.98 percent and mature in March 2050.
Similarly, according to the circular, the bonds will offer N1,000 per unit subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter.
The interest rate is payable semi-annually. For the interest rate, “For Re-opening of previously issued bonds, (where the coupon is already set), successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus any accrued interest on the instrument,” DMO said.
The circular also stated that the bond qualifies as a security. It read, “FNG bonds are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria.”
As regards redemption, the circular stipulated bullet repayment on the maturity date.
United Bank for Africa Successfully Launches US$300 Million 5-Year Senior Notes
United Bank for Africa Plc (UBA) successfully raised USD 300 million through its recently announced GMTN programme. The Global Offering represents five-year senior unsecured notes (144A/Reg S) listed on the London Stock Exchange and was the first issue out of the newly established USD 1.5 billion Global Medium Term Note Programme, established in November 2021.
The senior notes, rated by both Fitch (B) and S&P (B-), mature in November 2026 and were issued at a coupon of 6.750%. Net proceeds from the sale of the Notes will be applied towards the repayment of outstanding debt. The issuance was arranged by a syndicate of joint lead managers and bookrunners comprising Citibank, Mashreqbank, Renaissance Capital and Standard Chartered Bank. United Capital Plc acted as a Financial Adviser and Joint Bookrunner.
UBA announced the offering on November 8, 2021. Investor interest was global, including the United Kingdom, Europe, Asia, Africa, the Middle East and the US. The senior notes were priced yesterday evening via intra-day execution and the orderbooks were 1.7x oversubscribed. The successful issue reflects continuing global investor appetite for UBA’s credit and support for the Group’s pan-African strategy.
The new issue was launched alongside a Tender Offer on the outstanding USD500 million, 7.750% notes due 2022. The expiration date of the cash Tender Offer is November 16, 2021. Citibank, Mashreqbank, Renaissance Capital and Standard Chartered Bank are acting as Dealer Managers on the Tender Offer.
Speaking on the offering, the Group Managing Director & CEO of UBA Plc, Mr. Kennedy Uzoka stated: “This successful dollar-denominated offering further illustrates global investor confidence in the strong fundamentals of our Group. It is a testament to our customer first strategy, pan-African growth story, supported by prudent risk management and benchmark asset quality ratios”.
Also commenting on the Eurobond, the Group CFO, Mr. Ugo Nwaghodoh said: “UBA’s successful global offering is another milestone for the Group. The new issue further enhances our stable funding base and supports the growth of our balance sheet and our overall business”.
UBA is a leading full service pan-African bank with presence in 20 African countries and offering banking services to more than 25 million customers. With presence in New York, London and Paris, UBA is connecting people and businesses across Africa through retail, commercial and corporate banking, innovative digital banking offerings, trade finance and ancillary banking services.
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