Union Bank of Nigeria has successfully completed the full redemption of its Series 2 bond, paying both principal and coupon totalling N6.31 billion on September 3, 2025.
The repayment marks the conclusion of the bank’s 15.75 per cent fixed-rate bond issued under its N100 billion Debt Issuance Programme. According to the statement released by the bank, the issue was fully subscribed at the time of launch, and the final coupon payment was also executed on September 3, 2025.
The development is seen as a major milestone for Union Bank, particularly as it comes shortly after the completion of its merger with Titan Trust Bank in early September. Market watchers say the bond redemption highlights the bank’s financial resilience and strong governance structure, assuring investors of its ability to meet obligations despite ongoing industry reforms and consolidation.
Union Bank explained that the redemption was carried out in strict compliance with the Securities and Exchange Commission’s regulations, in partnership with ARM Trustees and UTL Trustees. The bank stressed that the timely execution of the coupon and principal repayment demonstrates its commitment to transparency, accountability, and regulatory excellence.
Commenting on the milestone, the Head of Strategy and Planning at Union Bank, Tosin Ibikunle, said the successful bond redemption sends a clear signal to the market about the institution’s strength and long-term strategy.
“This accomplishment not only enhances investor confidence but also underscores the bank’s robust financial position as we continue to innovate and support Nigeria’s economic growth,” Ibikunle said.
The N6.31 billion repayment is expected to boost confidence among capital market players, as bond investors often see timely coupon and principal settlements as key indicators of financial health. Analysts believe this will give Union Bank leverage in future capital market engagements, especially as Nigerian banks increasingly turn to bonds and commercial papers to raise funding for expansion.
The bank’s recent merger with Titan Trust has also created one of the stronger financial institutions in the country, with a wider customer base and improved capital structure. Observers say the merger, combined with the successful bond redemption, positions Union Bank as a key player in Nigeria’s evolving banking sector, where resilience, innovation, and regulatory compliance are becoming central to long-term sustainability.
Union Bank’s management stated that the institution will continue to strengthen its governance and risk management framework while exploring fresh opportunities to drive value for stakeholders. With the conclusion of the Series 2 redemption, the bank has reinforced its reputation as a reliable partner for investors and customers, while setting the stage for future fundraising programmes under Nigeria’s capital markets.
Financial experts note that the redemption will also be a confidence booster for the Nigerian bond market, showing that banks can successfully issue, manage, and redeem debt instruments despite economic challenges. This, they say, will encourage more corporate entities to consider bonds as a viable funding option.
