United Bank for Africa Plc (UBA), Nigeria’s fourth-biggest lender by market value, said it plans to sell NGN500 billion (USD3.25 billion) of bonds.

The bonds will have a seven-year tenure and will be issued in portions, the Lagos-based bank said in a statement distributed today at the Nigerian Stock Exchange in Lagos, Nigeria’s commercial capital. Shareholders will vote on the proposed sale at a meeting on Oct. 2 and the issue is subject to regulatory approval, UBA said, without providing further details.

The bond sale comes amid an overhaul in the Nigerian banking industry that led the Central Bank of Nigeria (CBN) Governor Lamido Sanusi to dismiss the CEOs of five lenders on Aug. 14 and inject NGN420 billion into the banks. In May, New York-based Eurasia Group said Nigerian banks may have as much as $10 billion in toxic assets.

First Bank of Nigeria Plc, the nation’s biggest lender by market value, said on July 27 it plans to sell NGN500 billion of bonds. Last week, shareholders of Guaranty Trust Bank Plc (GTBank), Nigeria’s third-biggest bank by market value, approved the sale of NGN200 billion of bonds.

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Source(s): Bloomberg News

United Bank for Africa | Guaranty Trust Bank (GTBank) | First Bank of Nigeria | Central Bank of Nigeria (CBN)