The board of directors of United Bank for Africa (UBA) Plc has decided to exercise the call option for the early redemption of the bank seven-year N20 billion bond, issued in October 2010.
The bond has a tenor of seven years with 13 per cent fixed rate coupon. The tenor of the bond ordinarily ends in 2017. The bank directors said they would be exercising their rights to redeem the bond earlier than its full redemption period.
Under the terms and conditions of the Trust Deed, UBA reserves the rights to early redemption from the fifth year anniversary of the bond, being September 2015.
The board assured that the bank has adequate liquidity to meet the proposed early redemption, noting that the exercise of this call option has relatively no impact on the liquidity and capital of the bank.