United Nigeria Airlines (UNA) has raised N22 billion from the first tranche of its N100 billion Commercial Paper (CP) programme, exceeding its initial subscription target of N20 billion following strong demand from investors.
The airline said the issuance was oversubscribed, with investor demand exceeding the targeted amount by more than N5 billion, reflecting confidence in its financial performance, business model, growth strategy and credit profile.
The successful completion of the first tranche marks a significant development in Nigeria’s aviation industry, as the airline’s financial adviser, Meristem Capital Limited, described it as the first commercial paper issuance by an airline in the country.
United Nigeria Airlines explained that, in response to the strong investor appetite, it decided to absorb 10 per cent of the excess subscription, increasing the amount raised to N22 billion, while returning the remaining funds to subscribers whose applications could not be fully accommodated.
The Managing Director of United Nigeria Airlines, Mazi Osita Okonkwo, said the level of demand demonstrated the confidence investors had in the airline’s business model, financial performance and expansion plans.
He said the proceeds from the issuance would be deployed towards supporting the airline’s fleet expansion and operational requirements.
Okonkwo expressed appreciation to investors who participated in the exercise, adding that the airline looked forward to strengthening its relationship with the investment community through the commercial paper programme and other capital market initiatives.
He said: “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.
“The proceeds will support fleet expansion and operations. We are grateful to the investors who participated and we look forward to more active engagement with investors as we continue with our CP and other capital market programmes.”
The commercial paper issuance was structured into two series, with tenors of 270 days and 364 days, providing investors with different investment maturity options.
The programme also received credit assessments from two rating agencies, Agusto & Co. and DataPro, which assigned ratings indicating the airline’s credit standing.
Agusto & Co. assigned the airline short-term and long-term ratings of A3 and BBB- respectively, with a stable outlook, while DataPro awarded it short-term and long-term ratings of A1 and BBB respectively.
The Managing Director of Meristem Capital Limited, Rasaki Salawu, who confirmed the successful completion of the transaction, said the investment firm was pleased to have served as Lead Issuing House for the registration of United Nigeria Airlines’ N100 billion Commercial Paper Programme and the debut issuance under Series 1 and 2.
According to him, the proceeds would support the airline’s working capital requirements and contribute to its broader growth objectives.
Salawu said the transaction attracted considerable interest from different categories of investors, including asset managers, insurance companies and high-net-worth individuals, demonstrating the level of confidence in the airline.
He noted that although the initial issuance target was N20 billion, the airline deliberately limited the increase to 10 per cent despite receiving excess demand of more than N5 billion.
“This is the first commercial paper issuance by an airline in Nigeria. It drew strong demand from a broad range of investors, including asset managers, insurance companies and high-net-worth individuals, reflecting the market’s confidence in the issuer.
“The issuance was oversubscribed, and the issuer chose to upsize by no more than 10 per cent, to N22 billion, despite excess demand of more than N5 billion. This discipline reflects the company’s financial prudence,” he said.
Salawu added that the successful debut issuance would contribute meaningfully to the airline’s expansion ambitions.
He also acknowledged the contributions of Cordros Capital and other dealers involved in the transaction, saying their collaboration was instrumental in delivering the milestone.
The successful fundraising comes as United Nigeria Airlines intensifies efforts to strengthen its domestic operations, expand its international presence and improve its competitiveness in the regional aviation market.
The airline currently operates flights to 14 destinations across Nigeria and Ghana and is finalising plans to expand its regional network.
It also has approvals to operate as a flag carrier to six international destinations, a development that could further expand its presence beyond the domestic market as it pursues its international growth strategy.
Beyond its operational expansion, the airline has continued to pursue international industry affiliations and commercial partnerships aimed at improving its global connectivity and distribution network.
United Nigeria Airlines is an International Air Transport Association (IATA) Operational Safety Audit (IOSA)-certified operator and has been an IATA member since 2022. It is also a full member of the African Airlines Association (AFRAA).
In 2026, the airline signed the IATA Multilateral Interline Traffic Agreement, a development expected to enhance its ability to establish commercial partnerships with other airlines and facilitate passenger connections across different networks.
It also secured Global Distribution System (GDS) agreements with Amadeus and Sabre, enabling travel agents across the world to access its ticket inventory.
The agreements are expected to improve the airline’s international market visibility, expand its distribution channels and make its services more accessible to passengers outside its existing operating network.
The N22 billion fundraising therefore represents a significant step in the airline’s efforts to mobilise capital for fleet development, working capital and operational expansion through Nigeria’s capital market.
It also introduces commercial paper as an additional financing option for the country’s aviation industry, where airlines have traditionally faced significant funding challenges arising from the high cost of aircraft acquisition, maintenance, fuel, insurance and other operational expenses.
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