…closes first tranche of ₦100bn programme, exceeds ₦20bn target
United Nigeria Airlines (UNA) has successfully concluded the first tranche of its ₦100 billion Commercial Paper (CP) Programme, raising ₦22 billion following an oversubscribed issuance that attracted investor subscriptions exceeding the initial ₦20 billion target.
The strong investor response underscores market confidence in the airline’s financial performance, business model, growth strategy and creditworthiness.
In recognition of the overwhelming demand, the airline elected to absorb 10 per cent of the excess subscription, increasing the size of the issuance to ₦22 billion, while the remaining excess applications were returned to subscribers who could not be fully accommodated.
Commenting on the development, Managing Director of United Nigeria Airlines, Mazi Osita Okonkwo, described the response as a strong endorsement of the airline’s operations and future prospects.
“The level of demand we received is a clear endorsement of our business model, 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 look forward to more active engagement with investors as we continue with our CP and other capital market programmes”, Okonkwo said.
The issuance was structured into two series, with tenors of 270 days and 364 days, and supported by investment-grade credit ratings from two independent rating agencies.
Agusto & Co. assigned the airline ratings of A3 for the short term and BBB- for the long term, with a stable outlook, while DataPro awarded ratings of A1 for the short term and BBB for the long term.
The Managing Director of Meristem Capital Limited, Rasaki Salawu, which served as the Lead Issuing House, described the successful transaction as a significant milestone for the airline and Nigeria’s aviation capital market.
“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 per cent, to ₦22 billion, despite excess demand of more than ₦5 billion. This discipline reflects the company’s financial prudence”, Salawu said.
He expressed confidence that the debut transaction would contribute meaningfully to the airline’s growth objectives, commending Cordros Capital and other dealers for their roles in successfully delivering the issuance.
United Nigeria Airlines currently operates flights to 14 destinations across Nigeria and Ghana and is finalising plans to expand its regional network.
The airline also has approvals to operate as a flag carrier to six international destinations, signalling its ambition to strengthen its presence beyond the domestic market.
An International Air Transport Association (IATA) Operational Safety Audit (IOSA)-certified operator, United Nigeria Airlines has been an IATA member since 2022 and is also a full member of the African Airlines Association (AFRAA).
In 2026, the airline signed the IATA Multilateral Interline Traffic Agreement and secured Global Distribution System (GDS) agreements with Amadeus and Sabre, providing travel agents worldwide with access to its ticket inventory.
The successful debut commercial paper issuance is expected to strengthen the airline’s working capital position, support fleet expansion and provide additional financial capacity for its planned operational and network growth.