United Nigeria Airlines Raises ₦22 Billion in First Phase of Funding Program

United Nigeria Airlines has successfully completed the first phase of its ₦100 billion funding program, raising ₦22 billion. This issuance was oversubscribed, meaning more investors wanted to buy in than there were shares available, showing strong confidence in the airline’s financial health and future plans.

The airline had set a target of ₦20 billion, but due to high demand, it opted to accept an additional 10% of the excess subscriptions. The remaining funds were returned to investors who could not receive full allocations.

Mazi Osita Okonkwo, the Managing Director of United Nigeria Airlines, expressed gratitude to the investors and highlighted that the strong demand indicates trust in the airline’s business model and growth strategies. The funds raised will be used to expand the airline’s fleet and support its operations.

The issuance was divided into two parts, with terms lasting either 270 days or 364 days. It received positive ratings from two credit agencies, which assess the financial stability of companies. This marks the first time an airline in Nigeria has issued commercial paper, a type of short-term loan.

According to Rasaki Salawu, Managing Director of Meristem Capital Limited, the lead firm for this funding, the strong interest from various investors, including asset managers and insurance companies, reflects the market’s confidence in United Nigeria Airlines. He noted that the disciplined approach of raising only ₦22 billion, despite the demand for more, shows the company’s financial responsibility.

Currently, United Nigeria Airlines operates flights to 14 destinations in Nigeria and Ghana and is planning to expand further. The airline is recognized for its safety and has been a member of the International Air Transport Association since 2022.