Dipo Olowookere
By Dipo Olowookere
The first commercial paper sales of UAN of Nigeria Plc attracted significant demand from a wide range of investors, including pension fund administrators, asset managers, insurance companies and high net-worth individuals (HNIs).
From the N45 billion commercial paper programme, the company sold N18.7 billion Series 1 and 2, recording a 3.8x subscription, according to a notice from the firm.
UAC Nigeria explained that the exercise was part of the intra-group treasury arrangement between UAC and its subsidiaries aimed at meeting short-term working capital requirements.
The CP issuance comprised two tenors; a 90-day Series 1 issuance which was priced at 8.00 per cent yield, and a 181-day Series 2 issuance sold at 8.25 per cent yield, reflecting the strong credit quality of the organisation and investors’ positive sentiment towards its operations and strategy.
“We are delighted to have successfully completed our first CP issuance in the Nigerian debt market. This is truly a testament to our company’s strength, the sustainability of our group’s brands and the trust displayed by the investing community.
“It is without a doubt that the success of this issuance provides an avenue to optimize our funding cost while continuing to drive our strategic initiatives as an organization.
“We are pleased by the success of the CP issuance and grateful to all parties involved in the transaction,” the Group Finance Director of UAC Nigeria, Mrs Funke Ijaiya-Oladipo, stated.
Business Post reports that Stanbic IBTC Capital Limited acted as lead arranger and dealer to the exercise, while FCMB Capital Markets Limited acted as the joint dealer, with Banwo & Ighodalo as solicitors.
