Rating Release

Agusto & Co. assigns a “Bbb+” rating to Union Bank of Nigeria Plc’s ₦30 billion, 10-year Fixed-Rate Direct Unsecured Subordinated bond.

The rating expires on 30 June 2020.

The rating assigned to Union Bank of Nigeria Plc’s (“UBN” or “the Issuer” or “the Bank”) ₦30 billion, 10-year fixed-rate direct unsecured subordinated bond (“the Issue”), being Series 3 of the ₦100 billion Debt Issuance Programme is a notch lower than the Issuer’s stand-alone rating of “A-“ by Agusto & Co which expires in June 2020. The Issue is subordinated to other senior debt that may arise and is judged to offer adequate safety of timely payments of interest and principal. The Issuer’s rating reflects its good brand equity, adequate capital base (upheld by shareholders’ support) and proven ability to refinance as evidenced in a 165% oversubscription of its combined debut Series 1 and 2 bond issuances in 2018.