Business

Union Bank raises N20bn through issuance of Commercial Paper

Union Bank of Nigeria (UBN) Plc on Tuesday closed the application list for a N20 billion short-term debt issuance aimed at strengthening the working capital of the commercial bank.

UBN offered to raise N20 billion through the issuance of 180-day and 268-day commercial paper (CP). The offer period for the new issuance opened on January 16, 2020 and closed on Tuesday. The new issuance was issued under the bank’s N100 billion Commercial Paper (CP) Programme, which was launched in 2018.

The bank had issued its debut issuance of Series 1 and 2 through which it successfully raised N24.3 billion in January 2019. The new issuance, Series 3 and 4 is targeted at institutional investors including pension and non-pension asset managers, as well as eligible high net-worth investors.

The bank explained that the new funding would provide further working capital as it delivers on its promise to be Nigeria’s most trusted and reliable banking partner, The Nation reports.

Union Bank reaffirmed its position as one Nigeria’s leading financial service institutions noting that it has approximately 5.6 million active customers serviced across 280 branches and cash centres nationwide as well as 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- by Agusto & Co, A- by DataPro and BBB+ by Global Credit Rating.

Stanbic IBTC Capital Limited and Union Capital Markets Limited were the dealers on the CP issuance by the bank while the CPs will be listed on the FMDQ OTC Securities Exchange platform.

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