Union Bank issues series 3 & 4 Commercial Paper, to raise N20 billion

One year after Union Bank Plc successfully raised N24.3 billion through the issuance of the series 1 and 2 of its N100 billion commercial paper programme, the company is now raising an additional N20 billion by issuing series 3 and 4 into the domestic capital market.

A statement signed by the Company Secretary, Somuyiwa Sonubi, as seen on the website of the Nigerian Stock Exchange, disclosed that the commercial papers were opened to the public on January 16th, 2020. Interested parties now have between today and tomorrow (January 20 and 21,) to buy the commercial papers (series 3 and series 4), which have a duration of 180-days and 268-days, respectively.

Union Bank issues series 3 and 4 Commercial Paper, set to raise N20 billion 

Who is eligible to participate? Union Bank said it is mainly targeting institutional investors with these issuances, including pension and non-pension asset managers. Some high net-worth investors are also eligible to apply.

Union Bank’s series 3 and 4 Commercial Papers are listed on the FMDQ Securities Exchange platform where they can be traded. Union Capital Markets Limited and Stanbic IBTC Capital Limited are the official dealers.

It said, “The 180-day and 268-day offer for the Series 3 and 4 respectively, opened on January 16, 2020, and is scheduled to close on January 21, 2020, 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.”

Nairametrics reported Union Bank’s registration of the N100 billion Commercial Paper programme in 2018. So far, the bank has issued series 1 to 4 which are expected to raise a total of N44 billion. Subsequent issuances in the future will enable the lender to raise additional capital.

In the meantime, the company said it intends to use the capital that will be raised from the issuance to facilitate its operations.

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