Sponsor Wire

United Bank of Africa Group
(Lagos)

UBA Capital, Others, Raise N18.5b for Imo State Government, Nigeria

2 July 2009

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SPONSOR WIRE

UBA Capital, the investment banking and asset management division of United Bank for Africa (UBA) Plc, led other financial institutions to raise N18.5bn for Imo State government to help meet its developmental goals. The issue was the second largest State debt financing in the Nigerian capital markets this year and a clear signal of the depth of investor demand and UBA Capital's leading role in African capital markets.

UBA Capital acted as Lead Issuer. The other issuing houses involved in the transaction were Stanbic IBTC, Future View Financial Services Limited and BGL Securities Limited.

The N18.5billion bond issue is Series 1 of a N40billion Medium Term bond issuance program of the State. The bond which was fully underwritten opened and closed on Tuesday June 30, 2009. It was issued at Par with a Fixed Rate coupon of 15.5% payable semi-annually. The bond is amortizing, tax exempt and backed by an Irrevocable Standing Payment Order ("ISPO") on the Federal Allocation of Imo State and will mature in 2016.

"As one of Africa's leading financial services institution, UBA is well positioned, given its balance sheet strength, distribution capability and intimate knowledge of the African markets, to act as a growth catalyst in the region, through funding initiatives of this nature. In line with our vision to be the Africa's Global Bank, we will continue to partner public and private sectors to assist them to achieve their financial needs in line with our commitment towards supporting the developmental aspirations of Africans and Africa related businesses" said the Deputy Managing Director, UBA, Mr. Phillips Oduoza, during the completion Board Meeting.

Proceeds of the bond financing will be used to finance capital projects in the state. Specifically, the Governor of Imo State, Chief Ikedi Ohakim said proceeds will go into the rehabilitation of water projects, rehabilitation and construction of roads and financing the state equity investment in Imo Wonder Lake and Conference Centre Oguta . The Governor who fielded questions from reporters during the Completion Board Meeting at the Transcorp Hilton Hotel, Abuja at the weekend said upon completion of the projects, the State would have more potential for wealth creation, employment opportunities and poverty eradication. He added that "no State can attain full development by relying on allocation from the Federal purse. There must be an alternative means of raising funds for subtle development, which is what we have decided to do in Imo State with the bond issue" he explained further.

Amadou Hott, CEO UBA Capital, reaffirmed the Governor's position saying that "This is a great achievement for Imo State and UBA Capital looks forward to replicating such landmark transactions in other States of Nigeria and the rest of sub Saharan Africa'. This is yet again evidence that African capital markets are open for business and that African institutions are in pole position to meet the financing requirements of their African clients."

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