United Nigeria Airlines Company Limited is planning to raise N20 billion through its debut commercial paper issuance, becoming the first domestic airline in Nigeria to tap the short-term debt market, as it seeks to strengthen its finances and fund an expansion of its flight operations.
The proposed issuance comprises Series 1 and Series 2 commercial papers with tenors of 270 days and 364 days, respectively, under a N100 billion commercial paper programme.
According to the airline’s September 2026 investor presentation, the transaction will be arranged by Meristem Capital Limited, with Cordros Advisory Services Limited, Coronation Merchant Bank Limited, FCMB Capital Markets Limited, FSL Advisory Limited and Quantum Zenith Capital & Investments Limited serving as dealers.
The planned fundraising comes as the airline pursues a five-year expansion strategy covering domestic, regional and international operations, supported by additional aircraft, new international routes and partnerships with global travel distribution platforms.
United Nigeria Airlines’ planned entry into the commercial paper market follows significant growth in its financial performance over the past five years.
The performance provides financial context for the planned fundraising, although the airline has not disclosed the expected yields, offer opening date or specific allocation of proceeds from the proposed N20 billion issuance in the information provided.
United Nigeria Airlines also received credit ratings from two agencies ahead of the transaction.
Agusto & Co. assigned the airline an A3 short term rating and a BBB minus long term rating, with a stable outlook. DataPro assigned short-term and long term ratings of A1 and BBB, respectively.
United Nigeria Airlines currently operates 10 aircraft, comprising Embraer ERJ 145s, Boeing 737 800s, Embraer E190s and CRJ900s.
It has also signed global distribution system agreements with Amadeus and Sabre, enabling travel agents worldwide to access its ticket inventory.
The proposed transaction comes amid growing reliance on commercial papers by Nigerian companies seeking alternatives to conventional bank borrowing.
Commercial papers are short-term debt instruments through which companies raise funds from investors, typically to finance working capital, operational expenses and other near-term funding requirements. They can provide an alternative to bank loans, although the cost of raising funds depends on market conditions, tenor and the issuer’s credit profile.
