May 4, 2015

UPDC: Commercial Paper Issuance Series 1 (Real Estate)

UPDC

Deal Description:

The UACN Property Development Company Plc. Commercial Paper issuance incorporated a first of its kind credit enhancement structure novel to domestic CP issuances which influenced the 168% subscription level recorded on the transaction.

As Joint Lead Arranger, FBN Capital Limited was involved in structuring the notes, advising on appropriate transaction structure, timing and pricing, guidance on investor appetite and distribution of the Notes to investors.

UPDC

UPDC ₦4,355,000,000 16% series 1 senior guaranteed fixed rate bonds due 2023 issued at par

Deal Description:

UPDC is a leading real estate company in Nigeria and has successfully and profitably engaged in property development and management, focusing on providing quality residential properties, housing estates and commercial real estate. The Company recently reconfigured its strategic focus to take advantage of emerging opportunities in commercial developments such as shopping malls, car parks, event centers and warehouses, away from its historical concentration on the premium segment of the real estate market.

FBNQuest Merchant Bank Limited successfully structured and issued the UACN Property Development Company PLC (UPDC) Series 1 Bond in April 2018. The offer represented the second bond issuance by the company and formed part of the company’s efforts at deleveraging its balance sheet. The transaction was significantly enhanced by a corporate guarantee offered by the issuer’s parent company and two financial institutions. Accordingly, the bond was rated ‘A-’, i.e., seven (7) notches higher than the company’s rating which encouraged subscription by pension funds and asset managers (accounting jointly for 65% of total allotment).

UPDC

UACN Property Development Company Plc. N10.66 billion Series 29-31 Commercial Papers

Deal Description:

FBNQuest Merchant Bank Limited acted as Joint arranger and dealer alongside other organisations for the issuance of the UPDC Series 29-33 Commercial Papers under the N24 billion programme, raising a total of N10.66billion across the 90, 120 and 182 days tenors.

UPDC

UPDC Note Issuance Facility

Deal Description:

UPDC is a leading property developer in the Nigerian Real Estate Industry and operates primarily in the premium category of both the residential and commercial segments of the housing market. The Company enjoys strong brand equity and has UAC of Nigeria Plc as its majority owner; UPDC also has interests in the hospitality sector. The UPDC facility was a 330 day-tenored facility to meet working capital requirements and a bridge facility to augment operational cash-flows before the Company’s Commercial Paper Issue in April 2016. Interest rate on the facility was benchmarked to agreed market indices to reflect market realities; and the facility was re-priced, where applicable in line with changes in an agreed market pricing benchmark. FBN Merchant Bank’s note issuance facility was the largest facility extended to the Company during the year (according to April, 2016 records) making a significant contribution to the real estate and hospitality sector in Nigeria.