United Capital Plc (UCAP) has successfully raised of N15 billion in its recently-issued Series 3 Commercial Paper (CP), under a N20 billion programme registered with the FMDQ Securities Exchange.
The Series 3 270-day issuance, was issued at a yield of 1.26% and had a subscription of circa 112% with firm commitments from a pool of institutional investors, particularly Asset Managers according to the company’s filing with the Nigerian Stock Exchange.
This issuance sets another ground-breaking record in the Nigerian Capital Markets, being the lowest yield on record for a 270-day CP issuance by a non-bank issuer.
A yield of 1.26% is relatively high when compared to the low rates of Treasury Bills. On Wednesday, T-Bill market closed the third session of the week flat at 0.1% average yield.
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The commercial paper was debuted in April and the company raised N5.3 billion in its series 1 & 2.
According to the Group Chief Executive Officer, Mr. Peter Ashade, “The commercial paper issuance is in line with our bid to diversify our funding sources, strengthen our capital base and intensify our strategic initiatives aimed at providing innovative financing solutions to our clients”.
FSDH Capital Limited, United Capital Plc, and UCML Capital Limited acted as Arrangers to the transaction.
About United Capital Plc (UCAP)
The company was incorporated on 14 March 2002, and listed on the Nigerian Stock Exchange on 13 January 2013 with a ticker name of UCAP.
The company is into the business of investment banking, trustees, asset management, and stockbroking. UCAP is listed on the main board of the Exchange, under the Financial Services sector and other financial institutions sub-sector.
The company address is Afriland Towers, 95/107, Broad Street, Lagos. At the close of trading on Wednesday, UCAP was down by 1.30% to close at N4.54% per share. YTD the share price is up by 89.17%.
By: Ifunanya Ikueze