United Nigeria Airlines has successfully closed the first tranche of its ₦100 billion commercial paper (CP) programme, raising ₦22 billion. The issuance was oversubscribed, with demand exceeding the ₦20 billion target. This reflects strong investor confidence in the airline's financial performance, growth strategy, and credit profile. The airline absorbed 10% of the excess subscription and returned the remainder to subscribers whose applications could not be fully allocated.
The Managing Director of United Nigeria Airlines, Mazi Osita Okonkwo, expressed satisfaction with the level of demand received, stating that it is a clear endorsement of the airline's business model and financial performance. He added that the proceeds will support fleet expansion and operations. Okonkwo also thanked investors who participated and looked forward to more active engagement with them as the airline continues with its CP and other capital market programmes.
The issuance was structured in two series, with tenors of 270 days and 364 days. The transaction was supported by investment-grade credit ratings from two agencies: Agusto & Co. and DataPro. 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.
Rasaki Salawu, Managing Director of Meristem Capital Limited, confirmed the development, stating that the company is proud to have served as Lead Issuing House for the registration of United Nigeria Airlines Limited's ₦100 billion Commercial Paper Programme. Salawu noted that this is the first commercial paper issuance by an airline in Nigeria and drew strong demand from a broad range of investors.
The commercial paper issuance was a significant milestone for United Nigeria Airlines, demonstrating the market's confidence in the issuer. The 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 has received several certifications and memberships, including IOSA certification, IATA membership since 2022, and full membership 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.
The successful commercial paper issuance will contribute meaningfully to United Nigeria Airlines' growth objectives. The airline plans to utilise the proceeds to support its working capital needs and expand its operations. With this milestone, United Nigeria Airlines has demonstrated its financial prudence and ability to access the capital market.
Key points
- United Nigeria Airlines raises ₦22 billion in oversubscribed commercial paper issuance
- The airline's growth strategy and credit profile have garnered strong investor confidence
- United Nigeria Airlines serves 14 destinations across Nigeria and Ghana, with plans to expand its regional footprints
