United Nigeria Airlines has closed the first tranche of its ₦100 billion commercial paper (CP) programme after raising ₦22 billion. The issuance was oversubscribed with demand exceeding the ₦20 billion target, which reflects strong investor confidence in the airline’s financial performance, growth strategy and credit profile.
In recognition of the strong response, United Nigeria Airlines absorbed 10% of the excess subscription and returned the remainder to subscribers whose applications could not be fully allocated.
Responding to the development, 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 ₦100 billion Commercial Paper Programme and the successful debut issuance of ₦20 billion under Series 1 and 2, which will support the company’s working capital needs.
“This is the first commercial paper issuance by an airline in Nigeria. It drew strong demand from a broad range of investors, including asset managers, insurance companies and high-net-worth individuals, reflecting the market’s confidence in the issuer. The issuance was oversubscribed, and the issuer chose to upsize by no more than 10%, to ₦22 billion, despite excess demand of more than ₦5 billion. This discipline reflects the company’s financial prudence. We believe this debut issuance will contribute meaningfully to the company’s growth objectives. We are pleased to have partnered with Cordros Capital and the other dealers to deliver this milestone.”
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.
United Nigeria Airlines is an IOSA-certified operator, has been an IATA member since 2022 and is a full member of the African Airlines Association. In 2026, it signed the IATA Multilateral Interline Traffic Agreement and secured GDS agreements with Amadeus and Sabre, giving travel agents worldwide access to its ticket inventory.