United Nigeria Airlines has raised ₦22 billion through the first tranche of its ₦100 billion Commercial Paper (CP) Programme, surpassing its initial target of ₦20 billion following an oversubscribed issuance.
The airline said the strong investor response underscored confidence in its financial performance, business model, credit profile and long-term growth strategy.
Following the oversubscription, the airline accepted an additional 10 per cent of the excess subscriptions, bringing the total amount raised to ₦22 billion, while unsuccessful applications were refunded to subscribers.
The Managing Director of United Nigeria Airlines, Mazi Osita Okonkwo, described the strong demand as an endorsement of the airline’s business model and expansion plans.
He said the funds raised would be deployed to support fleet expansion and operational activities.
“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,” Okonkwo said.
He appreciated investors who participated in the issuance and expressed optimism about further engagement with the investment community as the airline advances its commercial paper and other capital market programmes.
The issuance was structured into two series, with tenors of 270 days and 364 days.
It also secured investment-grade credit ratings from two rating agencies. Agusto & Co. assigned short-term and long-term ratings of A3 and BBB-, respectively, with a stable outlook, while DataPro awarded the airline A1 for short-term and BBB for long-term credit ratings.
The Managing Director of Meristem Capital Limited, the Lead Issuing House for the transaction, Rasaki Salawu, described the successful issuance as a major milestone for the airline and Nigeria’s aviation industry.
He noted that the transaction marked the first commercial paper issuance by an airline in Nigeria, attracting significant interest from institutional and individual investors, including asset managers, insurance companies and high-net-worth individuals.
Salawu disclosed that investor demand exceeded the initial target by more than ₦5 billion, but the airline elected to increase the offer by only 10 per cent, bringing the final subscription to ₦22 billion.
He said the decision reflected the company’s financial discipline, adding that the funds would strengthen its working capital and support its growth objectives.
United Nigeria Airlines currently operates across 14 destinations in Nigeria and Ghana and is finalising plans to expand its regional operations. The airline also has approvals to operate as a flag carrier to six international destinations.
An IATA member since 2022, the airline is also certified by the International Air Transport Association’s Operational Safety Audit (IOSA) and holds full membership of the African Airlines Association.
In 2026, the airline signed the IATA Multilateral Interline Traffic Agreement and secured Global Distribution System agreements with Amadeus and Sabre, giving travel agents worldwide access to its ticket inventory.
