United Nigeria Airlines Secures N22bn in CP Issuance

United Nigeria Airlines has successfully raised N22 billion from Nigeria’s capital market through its inaugural commercial paper (CP) issuance, marking it as the first airline in Nigeria to utilize this short-term debt instrument. The issuance was part of a larger N100 billion commercial paper programme and surpassed the initial target of N20 billion due to high investor demand.

The airline's Managing Director, Mazi Osita Okonkwo, stated that the strong demand indicates investor confidence in the airline's financial performance and growth strategy. The proceeds will be allocated to fleet expansion and operational needs.

The issuance was structured in two series with tenors of 270 days and 364 days, receiving investment-grade ratings from Agusto & Co. and DataPro. Rasaki Salawu, Managing Director of Meristem Capital Limited, the lead issuing house, noted that the successful issuance reflects financial discipline and strong market interest from various investors, including asset managers and insurance companies.