United Nigeria Airlines to raise N20bn via commercial paper

United Nigeria Airlines Company Limited has announced its intention to issue a N20 billion first tranche of commercial paper, making it the first domestic operator in Nigeria to do so. This issuance is part of a larger N100 billion commercial paper programme designed to strengthen the airline’s financial position and support its expansion into domestic, regional, and international markets.

The commercial paper will be issued in two series with tenors of 270 days and 364 days. Meristem Capital Limited is serving as the lead arranger, with several firms including Cordros Advisory Services, Coronation Merchant Bank, and FCMB Capital Markets acting as dealers.

The airline reported significant financial growth, with revenue increasing from N10.3 billion in FY2021 to N90.8 billion in FY2025, and profit after tax rising from N1.3 billion to N23.8 billion in the same period. United Nigeria Airlines has also secured investment-grade ratings from Agusto & Co. and DataPro. Currently operating 10 aircraft, the company plans to add six more aircraft to its fleet by the end of the year.