UAC completes maiden N18.7bn Commercial Paper issuance
UAC of Nigeria PLC has announced the successful completion of its N18.7 billion Series 1 and 2 Commercial Paper issuance, the debut issuance under its recently established N45 billion commercial paper programme.
According to disclosures filed to the Nigerian Exchange, the CP Issuance comprised two tenors; a 90-day Series 1 issuance priced at 8 per cent yield, and a 181-day Series 2 issuance which priced at 8.25 per cent yield.
The company said the CP issuance was 3.8x subscribed and was part of the intra-group treasury arrangement between UAC and its subsidiaries aimed at meeting short-term working capital requirements.
The disclosure read in part, “UAC of Nigeria PLC is pleased to announce the successful completion of its N18.7 billion Series 1 and 2 commercial paper issuance the debut issuance under its recently established N45 billion Commercial Paper Programme.
“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 priced at 8.00 per cent yield, and a 181-day Series 2 issuance which priced at 8.25 per cent yield. This reflects the strong credit quality of the Company and investors’ positive sentiment towards UAC’s operations and strategy.”
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.
For the deal, 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 to the Transaction.
Funke Ijaiya-Oladipo, group finance director of UAC, said, “We are delighted to have successfully completed our first CP Issuance in the Nigerian debt market. 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 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.”
