United Nigeria Airlines has raised N22 billion through the first tranche of its N100 billion Commercial Paper programme, following an oversubscribed debut issuance that attracted subscriptions above its initial N20 billion target.
The strong investor response underscores growing market confidence in the airline’s financial performance, business model, expansion strategy and credit standing. Following the oversubscription, the airline elected to absorb 10 per cent of the excess demand, bringing the total amount raised to N22 billion, while the remaining unallocated subscriptions were refunded to affected investors.
Commenting on the successful transaction, the Managing Director of United Nigeria Airlines, Mazi Osita Okonkwo, said: “The level of demand we received is a clear endorsement of our business model, and 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 we look forward to more active engagement with investors as we continue with our CP and other capital market programmes.”
The commercial paper issuance was divided into two series, with maturity periods of 270 days and 364 days. The programme also secured investment-grade credit assessments from two independent rating agencies, reflecting the airline’s credit standing and financial outlook.
Agusto & Co. awarded the airline an A3 short-term rating and BBB- long-term rating, both with a stable outlook, while DataPro assigned 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, also confirmed the successful completion of the transaction, describing it as a significant development for Nigeria’s aviation and capital markets.
He said: “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%, to ₦22 billion, despite excess demand of more than ₦5 billion. This discipline reflects the company’s financial prudence. We believe this debut issuance will contribute meaningfully to the company’s growth objectives. We are pleased to have partnered with Cordros Capital and the other dealers to deliver this milestone.”
The N22 billion proceeds are expected to strengthen the airline’s working capital position, support operational requirements and facilitate its fleet expansion plans as it pursues further growth within the African aviation market.
United Nigeria Airlines currently operates flights to 14 destinations across Nigeria and Ghana, with plans underway to expand its regional network. The carrier has also obtained regulatory approvals to operate as a flag carrier on six international routes, a development expected to support its broader international expansion ambitions.
Beyond its growing route network, the airline has continued to strengthen its international aviation credentials and global distribution capacity. It is an International Air Transport Association (IATA) Operational Safety Audit (IOSA)-certified operator, joined IATA in 2022 and maintains full membership of the African Airlines Association (AFRAA).
In a further move to improve its international connectivity and distribution reach, United Nigeria Airlines signed the IATA Multilateral Interline Traffic Agreement in 2026 and secured Global Distribution System (GDS) partnerships with Amadeus and Sabre. These agreements enable travel agents across the world to access the airline’s ticket inventory, potentially widening its international market reach and creating additional opportunities for passenger traffic.
The successful debut commercial paper issuance marks a notable step in United Nigeria Airlines’ capital-raising strategy as the carrier seeks to mobilise funding for operational growth, fleet development and expansion into new markets.
