UAC of Nigeria lists N54.03bn bond on FMDQ Exchange platform

FMDQ Securities Exchange Limited has approved the listing of UAC of Nigeria Plc’s N54.03 billion Series 1 7-Year 17.35 percent Fixed Rate Bond under its N150 billion Issuance Programme.

This approval, granted by the Exchange’s Board Listings and Markets Committee, underscores the Exchange’s pivotal role in enabling corporate entities to access long-term capital through transparent and well-regulated debt instruments.

UAC of Nigeria Plc, a diversified conglomerate with a century-long heritage, operates in key sectors of the Nigerian economy, including food and beverages, real estate, logistics, and quick-service restaurants.

The proceeds from the bond issuance, sponsored by a consortium of reputable firms including Stanbic IBTC Capital Limited (Lead Sponsor), Chapel Hill Denham Advisory Limited, FCMB Capital Markets Limited, and Quantum Zenith Capital & Investments Limited (Co-Sponsors), all Registration Members (Listings) of FMDQ Exchange, will be strategically allocated to refinance existing obligations, fund capital expenditure programmes, and strengthen the Issuer’s working capital, thereby enhancing operational efficiency and expanding capacity across UACN’s diverse business verticals.

Read also: UAC hits record revenue as CHI acquisition costs impact profit

Reacting to the bond listing, Funke Ijaiya-Oladipo, group finance director, UACN stated that, “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.”

Commenting on the transaction, Stanbic IBTC Capital Limited – the sponsor of the bond listing on FMDQ Exchange – through its chief executive, Oladele Sotubo said, “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,” he noted.

Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos.

Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA).

Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.

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