United Nigeria Airlines exceeds ₦20bn target as investors show confidence in airline’s growth
United Nigeria Airlines has raised ₦22 billion through the first tranche of its ₦100 billion Commercial Paper (CP) Programme, exceeding its initial ₦20 billion target following an oversubscribed issuance.
The airline said the strong investor response reflected confidence in its financial performance, business model, growth strategy and credit profile.
In recognition of the strong demand, the airline absorbed 10 per cent of the excess subscription, while the remaining applications that could not be fully accommodated were refunded to subscribers.
Commenting on the development, the Managing Director of United Nigeria Airlines, Mazi Osita Okonkwo, described the level of investor participation as an endorsement of the airline’s business model and growth plans.
He said the proceeds would 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 expressed appreciation to investors who participated in the issuance, adding that the airline looked forward to further engagement with the investment community as it advances its commercial paper and other capital market programmes.
The issuance was structured into two series with tenors of 270 days and 364 days.
The transaction received investment-grade credit ratings from two agencies. Agusto & Co. assigned short-term and long-term ratings of A3 and BBB-, respectively, with a stable outlook, while DataPro assigned 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, described the successful issuance as a significant milestone for the airline and Nigeria’s aviation industry.
According to him, the transaction represents the first commercial paper issuance by an airline in Nigeria and attracted strong interest from institutional and individual investors, including asset managers, insurance companies and high-net-worth individuals.
Salawu disclosed that although investor demand exceeded the target by more than ₦5 billion, the airline opted to increase the issuance by only 10 per cent, bringing the final amount to ₦22 billion.
He said the decision demonstrated the company’s financial discipline, adding that the proceeds would support its working capital requirements and growth objectives.
United Nigeria Airlines currently operates across 14 destinations in Nigeria and Ghana and is concluding plans to expand its regional operations. The airline also has approvals to operate as a flag carrier to six international destinations.
An IOSA-certified operator, United Nigeria Airlines has been a member of the International Air Transport Association (IATA) since 2022 and is also a full member of the African Airlines Association.
In 2026, the airline signed the IATA Multilateral Interline Traffic Agreement and secured Global Distribution System (GDS) agreements with Amadeus and Sabre, providing travel agents worldwide with access to its ticket inventory.
