Union Bank races to the debt market for N34.96bn short-term funding

Union Bank rewards customers with N55m in promo

Union Bank races to the debt market for N34.96bn short-term funding


 

 

To settle its short-term financial obligations, the old yet agile horse of Union Bank of Nigeria plc has raced hurriedly to the debt market to raise fund to a tune of N34.96 billion.

This was achieved through N2.58 billion Series 8 and N32.38 billion Series 9 Commercial Papers (CPs) just quoted on the FMDQ Securities Exchange.

The Commercial Papers came under the lender’s N100.00 billion Commercial Paper Issuance Programme on the Exchange platform.

These admissions on FMDQ are yet again reflective of the potential of the Nigerian debt capital market (DCM) and the commendable level of confidence demonstrated by both issuers and investors in the market, management of the FMDQ proudly said on Wednesday.

It further stated that the quotations also validate the efficient processes and integrated systems through which FMDQ Holdings PLC and its wholly owned subsidiaries – FMDQ Exchange, FMDQ Clear Limited, and FMDQ Depository Limited – has sustained its integrated service delivery to the market and its diverse stakeholders.

The quotation of the issuances was co-sponsored by FMDQ Exchange Registration Member, namely Renaissance Securities (Nigeria) Limited as lead sponsor; Standard Chartered Capital & Advisory Nigeria Limited; and UCML Capital Limited.

Meanwhile, it was learnt that the proceed of the quotation will be used to support Union Bank’s short-term funding requirements.

The Chief Executive Officer of Union Bank, Emeka Okonkwo, commented that “the series 8 and 9 commercial paper issuance under our N100.00 billion Domestic Debt Issuance programme is another strategic milestone in our bid to establish Union Bank as a leading financial institution in Nigeria.

“The net proceeds from the issuance will further diversify our sources of capital as we continue to accelerate business growth and drive our long-term strategy.

“Since the registration of the Debt Issuance Programme in 2018, we have continued to see active participation from the market, demonstrating continued investor confidence in Union Bank and its growth trajectory”.

Also commenting on the issue, the Ag. Chief Executive Officer and Director Financing, Renaissance Securities (Nigeria) Limited, Samuel Sule, said his company is pleased to have partnered with Union Bank on successfully accessing the domestic commercial paper markets once again.

“Union Bank is an established and sophisticated issuer and has proven its ability to navigate our ever-changing rate and liquidity environments on numerous occasions.

“The solid participation by institutional investors on this oversubscribed dual series issuance underscores the sustained confidence in Union Bank’s medium-term strategy and highlights the Bank’s attractive credit story”, Sule said.

In keeping with its commitment to the development of the DCM, FMDQ Exchange ensured it will continue to provide, in collaboration with market stakeholders, innovative and efficient services aimed at deepening and effectively positioning the Nigerian DCM for growth, in support of the realisation of a globally competitive financial market and vibrant economy.