United Nigeria Airlines raises N22bn in first tranche of N100bn CP

The Managing Director of UNA, Mazi Osita Okonkwo said: “The level of demand we received is a clear endorsement of our business model, and financial performance as well as the confidence the market has in our growth plans.

“The proceeds will support fleet expansion and operations. We are grateful to the investors who participated and we look forward to more active engagement with investors as we continue with our CP and other capital market programmes.”

The issuance was structured in two series, with tenors of 270 days and 364 days and the transaction was supported by investment-grade credit ratings from two agencies; Agusto & Co. assigned ratings of A3 for the short term and BBB- for the long term, with a stable outlook. DataPro assigned ratings of A1 for the short term and BBB for the long term.

The Managing Director of Meristem Capital Limited, Rasaki Salawu, who confirmed the development said: “We are proud to have served as Lead Issuing House for the registration of United Nigeria Airlines Limited’s N100 billion Commercial Paper Programme and the successful debut issuance of N20 billion under Series 1 and 2, which will support the company’s working capital needs.

United Nigeria Airline currently serves 14 destinations across Nigeria and Ghana and is finalising plans to increase its regional footprints. It also has approvals to operate as a flag carrier to six international destinations.

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