UAC of Nigeria Plc has successfully completed its N18.7 billion Series 1 and 2 maiden Commercial Paper issuance under its recently established N45 billion Commercial Paper Programme on Thursday.
UAC’s CP Issuance was very well received and attracted significant demand from a wide range of investors, including pension fund administrators, asset managers, insurance companies and high net-worth individuals. 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 which was priced at 8.25 per cent yield. This reflects the strong credit quality of the company and investors’ positive sentiment toward UAC’s operations and strategy.
The CP issuance, which was 3.8x subscribed, was part of the intra-group treasury arrangement between UAC and its subsidiaries aimed at meeting short-term working capital requirements.
Stanbic IBTC Capital Limited acted as Lead Arranger and Dealer to the CP Issuance, while FCMB Capital Markets Limited acted as Joint Dealer to the CP Issuance. Banwo & Ighodalo acted as Solicitors for the transaction.
Commenting on the significance and success of the CP Issuance, Mrs Funke Ijaiya-Oladipo, Group Finance Director of UAC, said in a statement to The Nigerian Stock Exchange (NGX) that “the UAC was delighted to have successfully completed our first CP Issuance in the Nigerian debt market.”
According to her, 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.”
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