UAC of Nigeria Plc (UACN) has opened a N45 billion Commercial Paper (CP) issuance under its N65 billion CP Issuance Programme, offering investors an opportunity to subscribe to its 182-day and 268-day series at effective yields of 18.5% and 19.5%, respectively.
The offer, which opened on October 16, 2025, closes on October 20, 2025, with settlement on October 21, 2025.
The offer is open to Qualified Institutional Investors and High Net-worth Individuals, in line with the Securities and Exchange Commission’s Rule 321 governing commercial paper issuance in Nigeria.
Issue details
Repayment of the CP will be funded from the cash flows of the UAC of Nigeria Group.
According to the press release, the notes may be quoted on the FMDQ Exchange platform or any other recognized exchange, offering investors secondary market liquidity.
Understanding the yield
The discount rate represents the percentage deducted from the face value of the note at purchase, while the effective yield reflects the actual annualized return an investor earns at maturity, taking into account the time value of money.
Since CPs are issued at a discount and redeemed at par, the effective yield is higher reflecting the true percentage gain over the investment period.
With Nigeria’s headline inflation rate at 18.02% as of September 2025 and the last Treasury Bill stop rates between 15% and 15.77%, the yield premium on UACN’s Commercial Paper is moderate roughly 2 to 3% above government securities and only marginally above inflation.
Financial and credit profile
The issue is rated A- (Agusto & Co) and A (DataPro), reflecting the company’s strong brand equity, diversified portfolio, and adequate liquidity position.