Union Bank of Nigeria Plc has signed a one-year $150 million, Naira-linked Bilateral Loan Agreement with Merrill Lynch International. The Agreement is the first-ever international debt raising by the Bank and the first offshore debt raising by any Nigerian bank since the credit turmoil in the international markets.

Speaking on the Agreement, Union Bank Group Managing Director/Chief Executive, Mr. Barth Ebong expressed his excitement, reflecting on the solidity of the Bank within the framework of the reputation of Merrill Lynch International as the Sole Arranger and Lender. He emphasised that the Bank had equipped itself to face the challenges posed by global expectations, adding that the Agreement would further propel the Bank to play its leadership role.

"We believe that being the first Nigerian and Sub-Saharan bank to successfully re-open the international credit markets for Sub-Saharan Africa after the recent credit volatility reflects Union Bank’s leading market position both in Nigeria and in Africa, with a remarkable list of achievements and sustainable developments over the decades. This deal is a great success that will contribute further to the successful development of our business and competitive positioning", Mr. Ebong said.

Giving an insight into the reasons behind the Agreement, Merrill Lynch Head of Sub-Saharan Africa, Global Markets, Mr. Alex Von Sponeck said that "the Union Bank name was very positively received internationally, and we are happy to have arranged this deal for Union Bank, its debut foray into the international markets, while at the same time demonstrating that the Nigerian banking sector is relatively resilient to international credit market volatility."

Union Bank is among the five largest banks in Nigeria in terms of assets and market capitalisation. It had a market capitalisation of N415bn and assets of N517bn as at March 31, 2006. It has a highly diversified shareholder structure with over 490,000 shareholders. In partnership with BlackRock, where Merrill Lynch owns substantial interests, it is among the 14 banks selected by the Central Bank of Nigeria to manage a portion of Nigeria’s foreign reserves. Fitch International Rating Agency had rated the Bank with B+ (long term foreign currency) and A+ (long term local currency) for 2005/2006 financial year.

Merrill Lynch is one of the world’s leading wealth management, capital markets and advisory companies with offices in 36 countries and territories and total client assets of approximately $1.5 trillion. As an investment bank, it is a leading global trader and underwriter of securities and derivatives across a broad range of asset classes and serves as a strategic advisor to corporations, governments, institutions and individuals worldwide. Merrill Lynch owns just under half of BlackRock, one of the world’s largest publicly traded investment management companies with approximately $1 trillion in assets under management.