United Nigeria Airlines (UNA) has raised N22 billion by its debut industrial paper (CP) issuance, exceeding its initial N20 billion target following sturdy investor demand.
According to the airline, the issuance represents the primary tranche of its N100 billion industrial paper programme, marking its entry into Nigeria’s short-term debt market.
The airline accepted a further 10% above its unique target and returned the remaining subscription funds to traders, because it seeks to strengthen working capital and help fleet growth.
United Nigeria Airlines attracts sturdy demand:
United Nigeria Airlines’ debut industrial paper issuance attracted demand exceeding the preliminary N20 billion target by greater than N5 billion, based on Meristem Capital Limited.
The airline, nonetheless, restricted the extra allotment to N2 billion, bringing the full issuance to N22 billion.
- “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,” Managing Director Mazi Osita Okonkwo stated.
Okonkwo added that the proceeds would help fleet growth and operations, whereas thanking traders for his or her participation.
Rasaki Salawu, Managing Director of Meristem Capital Limited, which acted as Lead Issuing House, described the transaction as Nigeria’s first industrial paper issuance by an airline.
He stated the provide attracted asset managers, insurance coverage firms and high-net-worth people, with the choice to restrict extra allotments reflecting monetary prudence.
The issuance comprised two sequence with tenors of 270 and 364 days, whereas Agusto & Co. assigned A3 and BBB- short-term and long-term scores, respectively, with a steady outlook.
DataPro assigned A1 and BBB scores for the respective tenors, whereas Cordros Capital and different sellers additionally participated in the transaction.
Airline income reaches N95.6 billion:
The industrial paper issuance follows important development in United Nigeria Airlines’ monetary efficiency over the previous 5 years.
- Nairametrics had earlier reported that the airline’s income elevated from N10.3 billion in 2021 to N90.8 billion in 2025, whereas revenue after tax rose from N1.3 billion to N23.8 billion.
- Revenue reached N95.6 billion in the primary half of 2026, exceeding the N90.8 billion recorded for all the 2025 monetary 12 months.
- August turnover elevated to N19.4 billion from N14.1 billion in July, whereas the airline recorded a web revenue of N1.2 billion.
Nigerian firms raised N1.61 trillion by industrial paper in 2025, representing a 40% improve from N1.15 trillion in 2024, based on Nairametrics Research.
The common industrial paper low cost price elevated to 22.38% in 2025 from 21.69% in 2024, whereas the common tenor rose to 233 days from 225 days.
The airline’s fundraising kinds a part of its five-year growth technique protecting home, regional and worldwide operations.
Commercial paper offers firms with short-term financing for working capital and operational necessities, though the borrowed funds have to be repaid at maturity.
The rising use of economic paper amongst Nigerian firms displays its function as an alternative choice to standard financial institution borrowing, with funding prices and reimbursement capability remaining essential issues for traders.
United Nigeria Airlines targets fleet growth:
United Nigeria Airlines at the moment operates 10 plane, comprising Embraer ERJ-145s, Boeing 737-800s, Embraer E190s and CRJ900s.
- The airline plans to take supply of six extra plane earlier than the top of 2026, probably rising its fleet to 16 plane if the deliveries are accomplished as scheduled.
- UNA at the moment serves 14 locations throughout Nigeria and Ghana and has approvals to function as a flag provider to 6 worldwide locations.
- The airline has secured Global Distribution System agreements with Amadeus and Sabre, permitting journey brokers worldwide to entry its ticket stock.
It is an International Air Transport Association (IATA) Operational Safety Audit-certified operator and has been an IATA member since 2022.
In 2026, UNA signed the IATA Multilateral Interline Traffic Agreement, which helps cooperation between airways on passenger bookings and connections.
The airline can also be a full member of the African Airlines Association, strengthening its participation in regional aviation business actions.
The deliberate plane deliveries and route growth are anticipated to help its broader development technique, alongside continued engagement with traders by industrial paper and different capital market programmes.
The N22 billion issuance subsequently represents an essential step in the airline’s capital market entry, whereas its means to handle funding obligations and execute fleet growth plans will stay key issues for traders.
