United Nigeria Airlines Company Limited is planning to boost N20 billion by its debut commercial paper issuance, changing into the first domestic airline in Nigeria to faucet the short-term debt market, because it seeks to strengthen its funds and fund an growth of its flight operations.
The proposed issuance includes Series 1 and Series 2 commercial papers with tenors of 270 days and 364 days, respectively, underneath a N100 billion commercial paper programme.
According to the airline’s September 2026 investor presentation, the transaction might be organized by Meristem Capital Limited, with Cordros Advisory Services Limited, Coronation Merchant Bank Limited, FCMB Capital Markets Limited, FSL Advisory Limited and Quantum Zenith Capital & Investments Limited serving as sellers.
The deliberate fundraising comes because the airline pursues a five-year growth technique masking domestic, regional and worldwide operations, supported by extra plane, new worldwide routes and partnerships with international journey distribution platforms.
Airline data N95.6 billion income in H1 2026
United Nigeria Airlines’ deliberate entry into the commercial paper market follows important development in its monetary efficiency over the previous 5 years.
- The airline’s income rose from N10.3 billion in 2021 to N90.8 billion in 2025, whereas revenue after tax elevated from N1.3 billion to N23.8 billion over the identical interval.
- It recorded income of N95.6 billion in the first half of 2026, exceeding its full yr 2025 income.
- Its August efficiency additionally confirmed an enchancment, with turnover growing to N19.4 billion from N14.1 billion in July. The airline returned to a internet revenue of N1.2 billion in the course of the month.
The efficiency supplies monetary context for the deliberate fundraising, though the airline has not disclosed the anticipated yields, supply opening date or particular allocation of proceeds from the proposed N20 billion issuance in the data offered.
United Nigeria Airlines additionally obtained credit score scores from two businesses forward of the transaction.
Agusto & Co. assigned the airline an A3 brief time period score and a BBB minus long run score, with a secure outlook. DataPro assigned short-term and long run scores of A1 and BBB, respectively.
Airline plans to broaden fleet and worldwide routes
United Nigeria Airlines at present operates 10 plane, comprising Embraer ERJ 145s, Boeing 737 800s, Embraer E190s and CRJ900s.
- The firm plans to take supply of six extra plane earlier than the tip of 2026, which might broaden its fleet to 16 plane if the deliveries are accomplished as deliberate.
- The airline at present serves 14 locations throughout Nigeria and Ghana and has secured approval to function as a flag provider to 6 worldwide locations.
It has additionally signed international distribution system agreements with Amadeus and Sabre, enabling journey brokers worldwide to entry its ticket stock.
Corporate commercial paper issuances rise
The proposed transaction comes amid rising reliance on commercial papers by Nigerian firms searching for options to traditional financial institution borrowing.
- According to Nairametrics Research, Nigerian corporates raised N1.61 trillion through commercial paper issuances in 2025, representing a 40% enhance from the N1.15 trillion recorded in 2024. The figures had been compiled from knowledge offered by FMDQ.
- The common low cost charge on commercial papers rose to 22.38% in 2025, from 21.69% in 2024, whereas the typical tenor elevated to 233 days from 225 days. The pattern mirrored continued company demand for brief time period funding regardless of elevated borrowing prices.
Commercial papers are short-term debt devices by which firms increase funds from traders, usually to finance working capital, operational bills and different near-term funding necessities. They can present a substitute for financial institution loans, though the price of elevating funds depends upon market situations, tenor and the issuer’s credit score profile.
