Union Bank Raises N20 Billion to Boost Working Capital

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Goddy Egene

Union Bank of Nigeria Plc is raising N20 billion in Series 3 and 4 under its N100 billion Commercial Paper (CP) programme to finance its working capital. The financial institution said the N20 billion CP follows the debut issuance of the Series 1 and 2 offering the domestic capital markets, which successfully raised N24.3 billion in January 2019.

According to Union Bank of Nigeria, the 180-day and 268-day offer for the Series 3 and 4respectively, opened on January16,2020 and is scheduled to close on January 21, 2020, with a target issuance size of N20 billion across both tenors.

“The CP offer is targeted at institutional investors including pension and non-pension asset managers, as well as eligible high net worth investors. The new funding is expected to provide the bank with further working capital as it delivers on its promise to be Nigeria’s most trusted and reliable banking partner,” it said. 

The bank posted profit before tax (PBT) of  N15.6 billion for the nine months ended September 30, 2019, up from N14.9 billion  in the corresponding period of 2018. Profit after tax (PAT) rose by four per cent from N14.7 billion to N15.2 billion.

Commenting on the performance, Chief Executive Officer, Union Bank of Nigeria Plc, its CEO, Emeka Emuwa, had said: “Profit Before Tax (PBT) for the group is up to N15.6 billion, a five per cent increase over the same period in 2018. Our continued focus on consumer centric service and product propositions is yielding solid results, contributing to a 28 per cent growth in our electronic channels fee income which is at N5.6 billion for the period. Our debt recovery drive continues to record successes with N8.4 billion of recoveries year to date.”