Union Bank raises N20bn through Commercial Paper

Union Bank of Nigeria (UBN) Plc has commenced bids for the issuance of Commercial Paper (CP) with 180-day and 268-day tenor to raise the sum of N20 billion.

The bank’s Company Secretary, Somuyiwa Sonubi, indicated this in a statement on the Nigerian Stock Exchange (NSE) website.

Sonubi said that the offer was part of the N100 billion CP programme registered in 2018.

She said that the bank successfully raised N24.3 billion in the debut issuance of Series 1 and 2 of the CP at the domestic capital in January 2019.

The company secretary explained that the Series 3 and 4 respectively, which opened on Jan. 16, would close on Jan. 21, with a target issuance size of N20 billion across both tenors.

“The CP offer is targeted at institutional investors including pension and non-pension asset managers, as well as eligible high net-worth investors.

“The new funding is expected to provide the bank with further working capital as it delivers on its promise to be Nigeria’s most trusted and reliable banking partner,” Sonubi said.

She stated that the CP would be listed on the FMDQ Securities Exchange platform at the end of the exercise.

It was reported that Stanbic IBTC Capital Limited and Union Capital Markets Limited are the dealers of the bank’s CP.

Union Bank, one of the Nigeria’s oldest financial service institution, has 5.6 million customers serviced across 280 branches and cash centres nationwide.