UAC of Nigeria Plc has listed its N54.03 billion Series 1, 7-year, 17.35% Fixed Rate Bond on the FMDQ Securities Exchange as it seeks to deepen access to long-term funding from Nigeria’s debt capital market.
The listing was disclosed by FMDQ Securities Exchange in an emailed release on Friday, following approval by its Board Listings and Markets Committee.
The bond, issued under UAC’s N150 billion Debt Issuance Programme, comes as the conglomerate begins the integration of its newly acquired subsidiary, C.H.I. Limited, and tests investor confidence in its long-term growth strategy.
What the release is saying
According to the release, proceeds from the bond will be strategically deployed across UAC’s diverse business chains, which span food and beverages, real estate, logistics, and quick-service restaurants.
The company said the funding will be applied toward refinancing existing obligations, supporting capital expenditure, and strengthening working capital to improve operational efficiency and expand capacity.
- “The successful issuance reflects strong market confidence in the company’s fundamentals and long-term strategy,” said UAC’s Group Finance Director, Mrs. Funke Ijaiya-Oladipo.
- “The bond broadens UAC’s funding base, reduces refinancing risk, and better aligns the company’s liabilities with its long-term growth plans, particularly in manufacturing and consumer-focused segments,” she added.
The company also noted that the bond enhances balance sheet flexibility as it integrates and grows CHI Limited, positioning the group to unlock synergies within its fast-moving consumer goods operations.
More insights
The N54.03 billion bond was sponsored by Stanbic IBTC Capital Limited as Lead Sponsor, alongside Chapel Hill Denham Advisory Limited, FCMB Capital Markets Limited, and Quantum Zenith Capital & Investments Limited as Co-Sponsors, all of which are FMDQ Registration Members (Listings).
- The successful issuance underscores continued appetite among institutional investors for well-structured corporate debt despite Nigeria’s tight monetary environment.
- Stanbic IBTC Capital’s Chief Executive, Mr. Oladele Sotubo, said the transaction highlights UAC’s strong heritage and evolving growth ambitions.
- He noted that the bond offers UAC an opportunity to optimise its capital structure while diversifying funding sources.
FMDQ Exchange said the listing aligns with its mandate to deepen Nigeria’s capital markets through long-term capital formation.
For FMDQ, the transaction supports broader objectives around industrial growth, job creation, and sustainable economic development by providing issuers with a technology-driven platform for accessing long-dated capital.
What you should know
UAC of Nigeria Plc recently simplified its corporate structure by consolidating its acquisition special purpose vehicle, UAC Food and Beverage Company Limited, into C.H.I. Limited following the completion of the beverage company’s acquisition.
The company clarified that UAC Food and Beverage Company Limited was a non-operating special purpose vehicle, and that the consolidation was aimed at streamlining governance, reducing administrative layers, and improving financial reporting clarity.
- The consolidation signals a shift from acquisition execution to operational integration.
- It is expected to support better oversight and efficiency across UAC’s FMCG businesses.
- Combined with the newly listed N54.03 billion 7-year bond, it reflects a focus on long-term funding optimisation.
Together, the consolidation and bond issuance position UAC to unlock synergies within its FMCG portfolio, particularly through C.H.I. Limited, while aligning its funding profile with long-term growth objectives.
