In September 2024, United Capital Group, a leading Nigerian financial services firm, orchestrated a landmark event in the nation's financial history by leading the issuance of Nigeria's inaugural domestic U.S. dollar-denominated bond. This unprecedented move not only showcased Nigeria's growing economic stature but also highlighted United Capital's pivotal role in advancing the country's capital markets.
The bond issuance was met with overwhelming enthusiasm, achieving an impressive 180% subscription and raising over $900 million. Such a robust response underscores the strong investor confidence in Nigeria's economic trajectory and the innovative financial strategies employed by United Capital. The bond offered a competitive yield of 9.75%, attracting a diverse array of investors, including Nigerians residing both domestically and abroad, as well as institutional investors. citeturn0search0
The funds procured from this bond are earmarked for critical infrastructure projects and developmental programs, aligning with the government's objectives to bolster economic growth and address existing infrastructure gaps. This strategic allocation of resources is expected to stimulate various sectors, fostering sustainable development across the nation. citeturn0search7
Dr. Gbadebo Adenrele, Managing Director of Investment Banking at United Capital Group, hailed the issuance as a transformative moment for Nigeria's capital market. He noted that this pioneering effort lays the groundwork for future substantial capital raises by the Nigerian government and other African nations, reflecting a growing trend of self-reliance in financing development projects. citeturn0search1
Peter Ashade, the Group CEO of United Capital Group, emphasized the firm's dedication to revolutionizing Africa's financial landscape. He stated that by providing innovative investment opportunities, United Capital is not only empowering investors but also significantly contributing to Nigeria's economic advancement. citeturn0search6
The successful execution of this bond issuance involved collaboration with several esteemed financial entities. Africa Finance Corporation served as the Global Coordinator, while Meristem Capital Limited, Stanbic IBTC Capital Limited, and Vetiva Advisory Services Limited acted as Issuing Houses. Financial advisory roles were fulfilled by Constant Capital Markets & Securities Limited and Iron Global Markets Limited, with legal guidance from Olaniwun Ajayi LP and G. Elias. Greenwich Trustees Limited functioned as the Trustee, collectively ensuring the seamless structuring and execution of the bond. citeturn0search0
This historic bond issuance not only reinforces Nigeria's position as a leader in financial innovation within Africa but also sets a precedent for other nations to emulate. It reflects a strategic shift towards utilizing domestic capital markets to fund development, thereby enhancing economic resilience and fostering sustainable growth across the continent.
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