UAC raises N18.7bn through Commercial Paper

UAC of Nigeria has raised N18.7 billion from the country’s investing public through a Commercial Paper issuance in the Nigerian debt market.

The fund was raised in a Series 1 and 2 of the N45 billion Commercial Paper Programme of UAC Nigeria.

The raise, which would add to the company’s debt, will be used by its subsidiaries to meet short-term working capital needs.

The issuance received investment from pension fund administrators, asset managers, insurance companies and high net-worth individuals, a document filed with the capital market authority, Nigerian Exchange Limited (NGX), on Wednesday, disclosed.

The commercial paper issuance comprised two tenors – a 90-day Series 1 issuance which priced at 8.00% yield, and a 181-day Series 2 issuance which priced at 8.25% yield.

According to Group Finance Director of UAC, Funke Ijaiya-Oladipo, who commented on the commercial paper issuance, said “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 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.”