Leading pan-African financial services and investment banking company United Capital Group has successfully spearheaded the issue of Sierra Leone’s first local currency corporate bond, valued at SLE32 million (about US$1.4 million).
This momentous occasion marks a turning point in the history of Sierra Leone’s capital market.
Serving in the role of Financial Adviser, United Capital offered the Issuer, LAPO SL, customized structuring, financial advising, and fundraising services through its investment banking division.
Micro, small, and medium-sized companies (MSMEs) in Sierra Leone are served by The Issuer, a microfinance organization, with a particular emphasis on offering low-income women’s loans at reasonable rates.
Dr. Gbadebo Adenrele, Managing Director, Investment Banking at United Capital Group, expressed his enthusiasm about the transaction: “We are pleased to have advised LAPO SL on this landmark transaction. It not only strengthens the corporate bond framework but also deepens the Sierra Leonean capital market. At United Capital, we are committed to enhancing the capital market ecosystem across Africa through active participation in innovative transactions like this.”
This bond issuance is a significant step in United Capital’s broader strategy to expand its footprint across the African capital markets. The Group CEO, Peter Ashade, emphasized the pan-African impact of this transaction saying “This successful corporate bond issuance in Sierra Leone is a testament to our strategic focus on expanding United Capital’s presence across Africa. By leveraging our expertise and resources, we are unlocking new opportunities and driving economic growth across the continent. Our goal is to empower corporates and sovereign governments with tailored financial solutions that transcend borders and foster prosperity throughout Africa.”
The transaction was a collaborative effort involving key financial institutions including Invest Salone (a UK-funded private sector development programme) and Pennarth Greene (a Sierra Leonean-based corporate finance advisory firm), underscoring a collective commitment to developing the bond market in Sierra Leone. The Africa Local Currency Bond Fund (ALCB Fund) served as the anchor investor, injecting approximately SLE27 million into the transaction, further signaling strong interest in Sierra Leone’s burgeoning economy.
United Capital Group’s pivotal role in this transaction highlights its capacity to lead and manage significant capital market activities across borders. Its track record includes leading major listings like the Transcorp Power IPO on the Nigerian Exchange (NGX), which boasted a market capitalization of N1.8 trillion, reaffirming its position as a key player in Africa’s financial landscape.
