By Kayode Tokede
Union Bank of Nigeria plc has announced plans to raise N20 billion in series 3 and 4 of its Commercial Paper (CP).
The lender in a statement to the Nigerian Stock Exchange (NSE) said the new capital will be used to boost the lender’s working capital this year.
The statement explained that, ”Following the successful registration of its N100 billion CP Programme in 2018, Union Bank of Nigeria Plc is set for its Series 3 and 4 CP issuance.
“This follows the debut issuance of the Series 1 and 2 offer in the domestic capital markets, which successfully raised N24.3 billion in January 2019.
“The 180-day and 268-day offer for the Series 3 and 4 respectively, opened on January 16, 2020 and is scheduled to close on January 21, 2020, with a target issuance size of N20 billion across both tenors.
“The CP offer is targeted at institutional investors including pension and non-pension asset managers, as well as eligible high net-worth investors.
“The new funding is expected to provide the Bank with further working capital as it delivers on its promise to be Nigeria’s most trusted and reliable banking partner.”
Union Bank is one of Nigeria’s leading financial service institutions, with approximately 5.6 million active customers serviced across 280 branches and cash centres nationwide, an asset base of over N1.8 trillion and total equity in excess of N240 billion as at September 30, 2019. The Bank has been assigned ratings of A (Agusto & Co.); A-(DataPro); BBB+ (GCR).
Stanbic IBTC Capital Limited and Union Capital Markets Limited are the Dealers on the Commercial Paper Issuance by the Bank. The Commercial Paper will be listed on the FMDQ OTC Securities Exchange platform.