Following the FMDQ Securities Exchange Limited’s approval of its application, UAC of Nigeria Plc has listed N54.03 billion Series 1 7-Year 17.35% Fixed Rate Bond under its N150.00 billion Issuance Programme.
The FMDQ confirmed that the approval was granted by the Exchange’s Board Listings and Markets Committee to enable the leading manufacturing company, one of Nigeria’s oldest and diversified conglomerate, access long-term capital through transparent and well-regulated debt instruments.
According to the approved application by the FMDQ Secutiries Exchange, UACN plans to commit the proceeds from the issuance to refinance existing obligations, fund capital expenditure programmes, and strengthen the Issuer’s working capital, according to an official statement.
The bond issuance is sponsored by a consortium of reputable firms including Stanbic IBTC Capital Limited, Chapel Hill Denham Advisory Limited, FCMB Capital Markets Limited, and Quantum Zenith Capital & Investments.
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Speaking on the bond listing, the UACN Group Finance Director, Mrs. Funke Ijaiya-Oladipo, said: “UACN is pleased to have successfully completed this landmark bond issuance in the Nigerian debt capital markets.
“The strong outcome of this transaction is a testament to our sound business fundamentals, the resilience of our brands, and the confidence the market continues to place in us.
“This issuance broadens our funding base and better positions the company to advance its strategic initiatives, including the integration and growth of CHI Limited following our recent acquisition. We appreciate the unwavering support of the investor community and the dedication of our advisers throughout this process”, she added.
In his remarks on the transaction, the Chief Executive of the Sponsor of the bond listing Stanbic IBTC Capital Limited, Mr Oladele Sotubo, explained: “Stanbic IBTC Capital is delighted to have served as Lead Issuing House to UACN on this successful bond issuance.
“As Nigeria’s foremost investment banking franchise, we remain steadfast in our commitment to enabling high-quality issuers access the Nigerian debt capital markets. UACN’s distinguished heritage and ambitious strategic direction, including the acquisition of CHI Limited to further strengthen its FMCG portfolio, highlight the significance of this transaction.
“This issuance provides UACN with a valuable opportunity to diversify its funding mix, optimise its capital structure, and accelerate its growth trajectory. Together with the Joint Issuing Houses, we appreciate the trust and confidence reposed in us by the Board and Management of UACN to guide this transaction to a successful completion”, the investment expert added.
