UAC Nigeria borrows N18.7bn from high net-worth individuals, others

UAC of Nigeria, a food and beverage company, has borrowed N18.7 billion from high net-worth individuals, asset managers, and many other investors through a Commercial Paper issuance in the Nigerian debt market.

The fund was raised in a Series 1 and 2 of the N45 billion Commercial Paper Programme of UAC Nigeria. While UAC and its subsidiaries will use the capital to meet short-term working capital requirements, it will increase the debt of the company.

UAC Nigeria’s commercial paper issuance received investment from pension fund administrators, asset managers, insurance companies and high net-worth individuals, a document filed with the capital market authority, Nigerian Exchange Limited (NGX), on Wednesday, disclosed.

The commercial paper issuance comprised two tenors – a 90-day Series 1 issuance which priced at 8.00% yield, and a 181-day Series 2 issuance which priced at 8.25% yield.

According to Group Finance Director of UAC, Funke Ijaiya-Oladipo, who commented on the commercial paper issuance, said “We are delighted to have successfully completed our first CP Issuance in the Nigerian debt market.

Read also: UAC Nigeria CEO’s insider dealings trigger profit-taking among shareholders

“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.”

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now