Rating Release

Agusto & Co. affirms the ‘Bbb-’ Issue rating assigned to Union Bank of Nigeria Plc’s series 3 ₦30 billion 10-year 16.2% fixed rate unsecured subordinated bond, with a stable outlook 

The rating expires on 27 June 2026. 

Agusto & Co. affirms the “Bbb-” long-term rating assigned to Union Bank of Nigeria Plc’s (“Union Bank” or “the Bank” or “the Issuer”) Series 3 ₦30 billion 10-year 16.2% fixed rate unsecured subordinated bond (“the Issue” or “the Bond”). The rating is a notch lower than the Bank’s standalone ‘’Bbb” rating, given the subordinated nature of the Bond, relative to other senior debt obligations of the Issuer. The ratings reflect the explicit regulatory support of the Central Bank of Nigeria (CBN) to enable the Bank meet its contractual obligations as they fall due and comply with all its financial obligations until 24 July 2026. The improved deposit mix, good liquidity profile, and experienced management team also support the assigned rating to the Issuer. However, the rating is constrained by the subpar capitalisation levels, obligor and sectoral concentration in the loan book, low profitability, uncertainty about the capital raise and the challenging macroeconomic environment.