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04/18/2007
RENAISSANCE CAPITAL LED $300 MILLION EQUITY OFFERING BY NIGERIA’S UNITED BANK FOR AFRICA
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN.
18 April 2007, London – In an example of growing cooperation between two key emerging markets, Renaissance Capital today announced that it acted as Joint Lead Placement agent with JP Morgan in an equity capital offering, which saw Nigeria's largest bank by assets, deposits, number of customers and branches, United Bank for Africa (UBA), raise $300 million from leading international institutional investors.
"We are truly thrilled to have led the first sizeable international capital raising by a Nigerian company through placement of Global Depositary Receipts," said Renaissance Group CEO Stephen Jennings. "As we continue to build our presence in the region, UBA’s offering is the first of many capital markets transactions to come for us in Sub-Saharan Africa."
"Renaissance Group launched its African operations earlier this year, and we are well on our way to creating a fully-fledged, pan-regional investment banking, research and asset management operation, with offices now in Lagos and Nairobi," said Neil Harvey, Deputy CEO of Renaissance Capital and CEO Africa. "Our participation in UBA’s capital raising demonstrates how much we’ve already achieved in terms of building relationships and adding value to our clients in Nigeria."
UBA’s CEO, Tony Elumelu, said about Renaissance Capital, "UBA’s international placement generated demand three times our initial target from a diverse group of high-quality Africa and emerging market investors. We have been overwhelmed by the response we have received from both the international and domestic offerings (the latter has been successfully anchored by UBA Global Markets) and must commend Renaissance Capital for the key role it played in successfully marketing our offer to international investors."
Stephen Jennings continued, "I fully expect the capital markets in Sub-Saharan Africa to develop as rapidly as they have done in Russia over the last 10 years. We intend to replicate in Africa the extraordinary success that Renaissance Group has had and continues to have in Russia and the CIS."
About Renaissance Group
Renaissance Group is an independent group of investment banking, asset management, merchant banking and consumer finance companies, specializing in high-opportunity emerging markets. Renaissance Group operates in Russia, Ukraine, Kazakhstan, the United Kingdom, the United States of America, Cyprus, Sub-Saharan Africa, the British Virgin Islands, Switzerland and Bermuda. The Renaissance Group occupies a leading position in the Russian, Ukrainian and other financial markets serving both domestic and international clients.
Renaissance Group began operations in Sub-Saharan Africa in 2006, and is replicating its successful business model in this high-opportunity region. Renaissance Group is the largest investor in ETI, a leading West African banking franchise already operating in 16 countries. The Group is creating the leading regional banking platform in Sub-Saharan Africa.
About Renaissance Capital
Renaissance Capital is a leading investment banking firm in Russia, Ukraine and the CIS and is expanding throughout Sub-Saharan Africa. Renaissance Capital has market-leading positions in each of its core businesses – M&A, equity and debt – and offers innovative and sophisticated derivatives and other structured products. Renaissance Capital is part of the Renaissance Group.
About United Bank of Africa www.ubagroup.com
United Bank of Africa was incorporated in February 1961 and was developed by a number of successful mergers and acquisitions, the most notable being the merger with Standard Trust Bank in 2005.
UBA is Nigeria’s leading banking franchise by total assets (17 percent market share) and branch network with 560 branches. The bank’s medium-term aspirations are to be the leading Sub-Saharan banking franchise with a growing global presence. Beyond Nigeria, UBA is present in Ghana (8 branches), and has a sizeable subsidiary in New York.
Besides the core banking unit of UBA, the UBA Group has a number of different business units that focus on the financial markets, such as investment banking, asset management, pensions custodian and private equity financing.
About Nigeria
Nigeria is Africa’s most populous country with a population of approximately 150 million. According to the IMF, GDP growth and per capita income in Nigeria have doubled in the past five years, headline inflation has fallen to single digits and foreign reserves have risen to $44bn, nearly twice that of South Africa. Stability has been fuelled by a sustained period of democratic rule (since 1999) and rising oil prices (Nigeria is sub-Sahara Africa’s largest oil exporter).
Nigeria received a BB- sovereign rating from S&P and Fitch and a Baa3 rating from Moody’s, with all agencies holding the rating outlook as Stable.
Government-led reforms have consolidated the Nigerian banking sector, reducing the number of banks in play to 25 from 89 previously. This succeeded in strengthening the system and repositioning the domestic banks to be able to compete favorably, even against foreign banks.
These materials are not an offer for sale of securities in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. The issuer of the shares has not registered, and does not intend to register, any portion of the offering in the United States, and does not intend to conduct a public offering of shares in the United States.
This communication is only directed at (i) persons who are outside the United Kingdom or (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “relevant persons”). The securities are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this communication or any of its contents.
Any offer of securities to the public that may be deemed to be made pursuant to this communication in any EEA Member State that has implemented Directive 2003/71/EC (together with any applicable implementing measures in any Member State, the “Prospectus Directive”) is only addressed to qualified investors in that Member State within the meaning of the Prospectus Directive.
This press release is not a public offer or advertisement of securities in the Russian Federation, and is not an offer, or an invitation to make offers, to purchase, sell, exchange or transfer any securities in the Russian Federation or to or for the benefit of any Russian person or entity.
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