Union Bank of Nigeria, has commenced sales of series 3 and 4 of its N100bn commercial paper programme, seeking to raise additional working capital in line with its goal to be Nigeria’s most trusted and reliable banking partner, the mid-tier lender has said.
The issuance, a year after the bank’s debut CP, comes amid declining cost of borrowing in the economy as CBN’s move to limit OMO participation force investors into bonds, equities and other asset classes.
The offer for the Series 3 and 4 CPs tenured 180-day and 268-day for Series 3 and 4 respectively opened on January16, 2020 and will close on January 21, 2020 with Union Bank seeking to raise up to N20bn 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.
“The new funding is expected to provide the Bank with further working capital as it delivers on its promise to be Nigeria’s most trusted and reliable banking partner,” Union Bank said.
The Commercial Paper will be listed on the FMDQ OTC Securities Exchange platform with Stanbic IBTC Capital Limited and Union Capital Markets Limited as the Dealers on the Commercial Paper Issuance by the Bank.
Union Bank has been assigned ratings of A – (Agusto & Co.); A – (DataPro); BBB+ (GCR).
The issuance of up to N20 Billion in Series 3 and 4 Commercial Paper follows the successful registration of its N100 billion Commercial Paper Programme in 2018.
In January 2019 Union Bank made its debut issuance of the Series 1 and 2 offer in the domestic capital markets in which it raised N24.3bn.
Union Bank is one of Nigeria’s leading financial service institutions, with approximately 5.6 million active customers serviced across 280 branches and cash centres nationwide, an asset base of over N1.8 trillion and total equity in excess of N240 billion as at September 30, 2019.
Union Bank of Nigeria, PLC. Established in 1917 and listed on the Nigerian Stock Exchange in 1971, Union Bank is a household name and one of Nigeria’s long-standing and most respected financial institutions.
The Bank has a network of over 280 Sales and Service Centers across Nigeria. Following recapitalisation in 2012 from new investors and a new Executive Management team, Union Bank has undergone an award-winning transformation programme to re-establish the bank as a leading provider of financial services in Nigeria. Union Bank is focused on Retail, Commercial and Corporate Banking businesses.
In addition to standard current and savings product portfolio, Union Bank has launched pioneering products into the Nigerian retail market including Union Korrect, Union Goal and Union Betta.
As of Friday, Union Bank shares are up 8.3 percent since the start of the year.
