United Nigeria Airways Corporate Restricted is making plans to boost N20 billion via its debut business paper issuance, changing into the primary home airline in Nigeria to faucet the temporary debt marketplace, because it seeks to give a boost to its budget and fund a variety of its flight operations.
The proposed issuance incorporates Collection 1 and Collection 2 business papers with tenors of 270 days and 364 days, respectively, below a N100 billion business paper programme.
In step with the airline’s September 2026 investor presentation, the transaction shall be organized via Meristem Capital Restricted, with Cordros Advisory Services and products Restricted, Coronation Service provider Financial institution Restricted, FCMB Capital Markets Restricted, FSL Advisory Restricted and Quantum Zenith Capital & Investments Restricted serving as sellers.
The deliberate fundraising comes because the airline pursues a five-year enlargement technique protecting home, regional and global operations, supported via further plane, new global routes and partnerships with world trip distribution platforms.
Airline data N95.6 billion income in H1 2026
United Nigeria Airways’ deliberate access into the economic paper marketplace follows important expansion in its monetary efficiency over the last 5 years.
- The airline’s income rose from N10.3 billion in 2021 to N90.8 billion in 2025, whilst benefit after tax larger from N1.3 billion to N23.8 billion over the similar duration.
- It recorded income of N95.6 billion within the first part of 2026, exceeding its complete yr 2025 income.
- Its August efficiency additionally confirmed an development, with turnover expanding to N19.4 billion from N14.1 billion in July. The airline returned to a internet benefit of N1.2 billion all over the month.
The efficiency supplies monetary context for the deliberate fundraising, despite the fact that the airline has now not disclosed the anticipated yields, be offering opening date or explicit allocation of proceeds from the proposed N20 billion issuance within the data equipped.
United Nigeria Airways additionally won credit score rankings from two businesses forward of the transaction.
Agusto & Co. assigned the airline an A3 quick time period ranking and a BBB minus longer term ranking, with a strong outlook. DataPro assigned temporary and longer term rankings of A1 and BBB, respectively.
Airline plans to increase fleet and global routes
United Nigeria Airways lately operates 10 plane, comprising Embraer ERJ 145s, Boeing 737 800s, Embraer E190s and CRJ900s.
- The corporate plans to take supply of six further plane ahead of the tip of 2026, which might increase its fleet to 16 plane if the deliveries are finished as deliberate.
- The airline lately serves 14 locations throughout Nigeria and Ghana and has secured approval to perform as a flag service to 6 global locations.
It has additionally signed world distribution machine agreements with Amadeus and Sabre, enabling trip brokers international to get entry to its price ticket stock.
Company business paper issuances upward thrust
The proposed transaction comes amid rising reliance on business papers via Nigerian firms in the hunt for possible choices to traditional financial institution borrowing.
- In step with Nairametrics Analysis, Nigerian corporates raised N1.61 trillion through commercial paper issuances in 2025, representing a 40% build up from the N1.15 trillion recorded in 2024. The figures had been compiled from knowledge equipped via FMDQ.
- The typical cut price charge on business papers rose to 22.38% in 2025, from 21.69% in 2024, whilst the typical tenor larger to 233 days from 225 days. The craze mirrored persisted company call for for brief time period investment in spite of increased borrowing prices.
Industrial papers are temporary debt tools in which firms elevate finances from buyers, most often to finance running capital, operational bills and different near-term investment necessities. They may be able to supply a substitute for financial institution loans, despite the fact that the price of elevating finances is dependent upon marketplace prerequisites, tenor and the issuer’s credit score profile.