Union Bank of Nigeria Plc said the N20 billion series 3 and 4 Commercial Paper (CP) is expected to provide the bank with further working capital that will help to enhance its business growth.
According to a notice, which was sent to capital market community on Monday January 20, 2020 by the Company Secretary, Somuyiwa Sonubi, “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”.
The issuance is coming, following the successful registration of its N100 billion Commercial Paper programme in 2018. The debut issuance of the Series 1 and 2 offer in the domestic capital market was in January 2019, and the bank successfully raised N24.3 billion.
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. 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.
With an asset base of over N1.8 trillion and total equity in excess of N240 billion as at September 30, 2019. The Bank has been assigned ratings of A – (Agusto & Co.); A – (DataPro); BBB+ (GCR). Stanbic IBTC Capital Limited and Union Capital Markets Limited are the Dealers on the Commercial Paper Issuance by the Bank. The Commercial Paper will be listed on the FMDQ OTC Securities Exchange platform.
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.