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Business News of Saturday, 18 January 2020

Source: www.mynigeria.com

Union Bank to raise N20 billion through commercial paper

Union Bank Union Bank

Union Bank is hoping to raise the sum of N20 billion from the issuance of its Series 3 and 4 commercial paper.

The lender is looking to consolidate on the success garnered from the debut issuance of its Series 1 and 2 offer in the domestic capital markets, which successfully raised N24.3 billion in January 2019, according to the statement released to the Nigerian Stock Exchange.

The offers of the new Series 3 and 4 opened on January 16, 2020, and will close on January 21, 2020, and it is for 180 days and 268 days.

According to the statement, the offer is targeted at institutional investors including pension and non-pension asset managers, as well as eligible high net-worth investors.

The essence of the capital raise is to provide the Bank with further working capital as the bank continues to consolidate itself as a strong financial institution.

"Stanbic IBTC Capital Limited and Union Capital Markets Limited are the Dealers on the Commercial Paper Issuance by the Bank. The Commercial Paper will be listed on the FMDQ OTC Securities Exchange platform.

The Bank has been assigned ratings of A-(Agusto & Co.); A-(DataPro); BBB+ (GCR)," the statement read in part.

Union Bank is one of Nigeria’s leading financial service institutions, with approximately 5.6 million active customers serviced across 280 branches and cash centres nationwide, an asset base of over N1.8 trillion and total equity in excess of N240 billion as at September 30, 2019.