United Nigeria Airlines Secures N22 Billion in CP Issuance

United Nigeria Airlines (UNA) successfully raised N22 billion through its debut commercial paper (CP) issuance, exceeding its initial target of N20 billion due to strong investor demand. This issuance is the first tranche of UNA's N100 billion commercial paper programme, marking its entry into Nigeria's short-term debt market.

The airline accepted an additional 10% above its original target, returning excess subscription funds to investors. The proceeds will be used to strengthen working capital and support fleet expansion.

The issuance attracted demand exceeding the initial target by over N5 billion, with the total allotment limited to N2 billion. The issuance comprised two series with tenors of 270 and 364 days, receiving ratings of A3 and BBB- from Agusto & Co., and A1 and BBB from DataPro.

The transaction was described by Rasaki Salawu, Managing Director of Meristem Capital Limited, as Nigeria's first commercial paper issuance by an airline. This fundraising is part of UNA's five-year expansion strategy covering domestic, regional, and international operations.