Union Bank of Nigeria Plc Series 1 and 2 Commercial Paper Offer Now Open

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Emeka Emuwa, Managing Director/CEO, Union Bank of Nigeria Plc

Culled—Proshare

January 22, 2019/Stanbic IBTC Stockbrokers

Stanbic IBTC Capital Limited and Standard Chartered Capital & Advisory Nigeria Limited are delighted to notify you of the inaugural Commercial Paper (“CP”) Issuance by Union Bank of Nigeria PLC (“Union Bank” or the “Bank”) under its N100 billion CP Issuance Programme. The proceeds of the Issuance will be for working capital purposes. 

Union Bank is a public limited liability company duly licenced under the laws of Nigeria to carry on commercial banking activities in Nigeria. The Bank is a full-fledged commercial bank with an international banking subsidiary in the United Kingdom. Union Bank is one of Nigeria’s leading financial services organisations, with an asset base of over N1.5 trillion and shareholders’ funds in excess of N290 billion as at 30 September, 2018. 

The Bank currently has approximately 4.3 million active customers served through over 300 sales and service centres, over 1,000 active Automated Teller Machines (ATMs) and over 7,800 Point of Sale (POS) terminals strategically located across Nigeria. Union Bank has won numerous awards over the last two years, such as ‘The Fastest Growing Retail Bank’ by International Finance Magazine, ‘Excellence in Innovation in Banking’ by New Age Banking Awards and the ‘Brand Evolution of the Year’, ‘Iconic Brand of the Year’ awards by Marketing World Awards. 

The inaugural CP issuance under the Programme follows Union Bank’s first foray into the domestic debt capital markets as the bank successfully issued its N7.2bn, 3-year and N6.3bn, 7-year Bonds due under its N100,000,000,000 Debt Issuance Programme. 

Please find below a summary of the terms of the offer:

Issuer: Union Bank of Nigeria PLC
Series: 1 2
Tenor: 90-days 181-days
Target Size: Up to NGN20 billion across both tenors
Discount Rate: 12.83% 13.97%
Implied Yield: 13.25% 15.00%
Offer Opens: Tuesday, 22 January 2019
Offer Closes: Friday, 25 January 2019
Settlement Date: Tuesday, 29 January 2019
Issuer Rating: A- (Agusto & Co.); BBB+ (GCR)
Minimum Subscription: NGN5 million
Tax Consideration: Free and clear of withholding taxes

 

The following documents are attached for your perusal: 

  1. CP Programme Memorandum
  2. Series I and II Red Herring Pricing Supplements
  3. Series I and II Commitment Forms
  4. Union Bank of Nigeria PLC 2019 PENCOM Compliance Certificate

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