UPDC receives approval to list N4.36bn bond on NSE

The Nigerian-based company, UACN Property Development Company (UPDC) Plc has received regulatory approval to list its N4.36bn bond on the Nigerian Stock Exchange.

UPDC known to acquire, develop, sell and manage serviced commercial and residential accommodations, will be listing the N4.355bn Series 1 Senior Guaranteed Fixed Rate Bond Due 2023 under its N20bn  Bond Issuance Programme. The introduction of this listing will provide UPDC bondholders opportunity to trade on their investments and allow new investors to take part in the issue.

Attempts by the company to raise equity funds last year wasn’t completely successful as UPDC has been leveraging on debts as capital to fund its projects due to the economic recession Nigeria was hit with, shrinking access to long-term capital.

Shareholders appeared to have shunned the shares that were provisionally allotted to them under the rights issue. UPDC had launched a rights issue of 1.719 billion ordinary shares of 50 kobo each to existing shareholders at N3 per share in a bid to raise N5.16 billion. The shares were provisionally allotted based on one new share for every one share held as at close of business on January 19, 2017. The rights issue, which had opened on April 18, 2017, closed on May 26, 2017. However, the company only recorded subscription for 879.65 million ordinary shares valued at N2.64bn.

UPDC paid a total of N2.83bn as interest expense during the year ended December 31, 2016, which contributed significantly to the company’s net loss of N1.55bn during the period. It had planned to use N3bn from the N5.2bn rights issue to repay debts.