UACN to raise N45bn in CP issuance from debt market

BY ANITA OKORO

More local businesses are continuing to seek short-term capital from the debt capital market through the issuances of commercial papers (CPs) to meet their internal financing obligation, the latest is UAC of Nigeria Plc.

FMDQ has approved the quotation of the company’s N45 billion commercial paper programme on its platform. The OTC securities exchange accepted the registration of the CP programme following due approval from the board listings and markets committee to affirm the highly efficient time–to–market and uniquely tailored listing and quotation service the exchange offers.

UAC of Nigeria is seen as one of Nigeria’s leading and diversified companies operating in the economy’s food and beverage, real estate, paint and logistics sectors and has evolved to become an investment holding company active in six sectors of the Nigerian economy.

The N45 billion CP programme registration was sponsored by Stanbic IBTC Capital Limited – a registration member (Quotations) of the exchange. The quotation strategically positions UAC to quickly raise short-term finance from the Nigeria debt capital market (DCM).

After a successful registration of the CP and the quotation of subsequent CPs on the FMDQ Exchange UACN would enjoy some benefits including, but not limited to value transfer risk management, enhanced investor confidence, effective price formation, efficient platform to enable access to capital and global visibility.

FMDQ Group, in its comment on the listing, said it is strategically positioned to provide registration, listing quotation and noting services; as well as, integrated trading clearing and central counterparty, settlement, and risk management for financial market transactions.

It also provides depository of securities, as well as data and information services across the debt capital, foreign exchange, derivation and equity markets.