UAC of Nigeria Plc (UACN), one of Nigeria’s leading conglomerates with a rich legacy across the food, real estate, paints, and logistics sectors, has announced the opening of its ₦45 billion Commercial Paper (CP) issuance under a ₦65 billion CP Issuance Programme. The offer, which commenced on October 16, 2025, and closes October 20, 2025, is designed to provide investors with short-term, high-yield opportunities while enabling the company to deepen its access to Nigeria’s money market.
According to the company, the CP issuance features two series — a 182-day note with an effective yield of 18.5%, and a 268-day note offering 19.5%. Settlement is scheduled for October 21, 2025, while the offer is open strictly to Qualified Institutional Investors and High Net-worth Individuals, in line with the Securities and Exchange Commission (SEC) Rule 321 governing CP issuances in Nigeria.
Strong Performance Backing the Offer
UACN’s financial fundamentals continue to demonstrate resilience and growth, providing confidence in its short-term debt instruments.
The Group generated a robust ₦10.84 billion net operating cash flow in the first half of 2025, marking a sharp rise from ₦6.91 billion recorded in FY 2024. As of June 2025, retained earnings stood at ₦53.17 billion, reflecting consistent profitability supported by a five-year profit Compound Annual Growth Rate (CAGR) of 43%.
The Group also reported cumulative operating cash flows exceeding ₦6 billion, further strengthening its liquidity profile and repayment capacity. UACN said repayment of the CP will be funded primarily from internal cash flows across its diversified business portfolio, ensuring investor confidence in the redemption process.
Details of the Commercial Paper Issuance
- Series 1 (182 Days): Issued at a 16.94% discount rate, offering an 18.50% effective yield, maturing April 21, 2026.
- Series 2 (268 Days): Issued at a 17.06% discount rate, providing a 19.50% effective yield.
- Minimum Subscription: ₦10 million, with increments in multiples of ₦1,000 thereafter.
- Settlement Date: October 21, 2025.
The notes may be quoted on the FMDQ Exchange or other recognized platforms, giving investors access to secondary market liquidity, a key advantage in Nigeria’s fixed-income market.
Market Context: Yields, Inflation, and Investor Sentiment
With Nigeria’s headline inflation rate at 18.02% (September 2025) and Treasury Bill stop rates between 15% and 15.77%, UACN’s CP offers a moderate premium of 2–3% above government securities. This makes it an attractive option for investors seeking corporate-backed instruments that slightly outperform sovereign yields while maintaining credible risk management standards.
Financial experts note that in an inflationary environment where real returns on traditional instruments remain compressed, the UACN CP provides a hedge against inflation with its competitive yield structure and strong credit fundamentals.
Credit Ratings and Investor Protection
The UACN CP issuance is rated A- by Agusto & Co. and A by DataPro, signaling high creditworthiness and low-to-moderate default risk. These ratings are backed by the company’s established market leadership, diversified revenue streams, and effective corporate governance.
The Group’s brands, which include Gala, Mr. Bigg’s, Vitalfeeds, Paints & Coatings, and UAC Foods, continue to sustain UACN’s market dominance, offering multiple revenue sources to support liquidity and investor returns.
Investor Highlights
- Attractive Yields: Up to 19.5% return for short-term investors seeking alternatives to Treasury Bills.
- Solid Credit Ratings: A-/A from top Nigerian agencies ensures dependable repayment.
- Liquidity Advantage: Notes are tradable on FMDQ, offering secondary market exit opportunities.
- Corporate Strength: Backed by ₦10.84 billion in operating cash flow and ₦53 billion retained earnings.
- Strategic Capital Management: Part of UACN’s plan to optimize funding costs, diversify investor base, and sustain growth in Nigeria’s evolving financial landscape.
Analyst Perspective
Market analysts view this CP issuance as a strategic move by UACN to capitalize on investor appetite for high-quality short-term corporate debt amid tightening monetary conditions. The offer, according to investment professionals, also signals confidence in the Nigerian money market’s depth and reinforces UACN’s reputation for financial prudence and transparency.
With rising investor interest in non-sovereign instruments, UACN’s issuance could serve as a benchmark for other corporates seeking to access liquidity while maintaining stable credit metrics.
UAC of Nigeria Plc’s ₦45 billion commercial paper issuance underscores its commitment to deepening Nigeria’s capital market, providing credible investment options, and sustaining business growth through disciplined financial management. With its strong credit profile, liquidity backing, and competitive yield structure, the offer represents one of the most notable CP issuances in Nigeria’s corporate debt space in 2025.
UAC of Nigeria Plc opens ₦45 billion Commercial Paper issuance offering yields of up to 19.5%, backed by strong liquidity, robust cash flow, and A-/A credit ratings. The short-term debt programme underlines UACN’s leadership in Nigeria’s corporate finance market.
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