UAC of Nigeria Plc opens N45 billion industrial paper issuance; yield as much as 19.5% 

UAC of Nigeria Plc (UACN) has opened a N45 billion Business Paper (CP) issuance below its N65 billion CP Issuance Programme, providing traders a chance to subscribe to its 182-day and 268-day collection at efficient yields of 18.5% and 19.5%, respectively.

The supply, which opened on October 16, 2025, closes on October 20, 2025, with settlement on October 21, 2025.

The supply is open to Certified Institutional Buyers and Excessive Internet-worth People, in step with the Securities and Change Fee’s Rule 321 governing industrial paper issuance in Nigeria.

Challenge particulars 

• The Collection 1 CP (182 days) is issued at a 16.94% low cost price (18.50% efficient yield) and matures on April 21, 2026.
•  Collection 2 CP (268 days) carries a 17.06% low cost price (19.50% efficient yield).
•  The minimal subscription is N10 million, and thereafter in multiples of N1,000.

Compensation of the CP can be funded from the money flows of the UAC of Nigeria Group.

• The corporate generated internet working money move of N10.84 billion in H1 2025, in comparison with N6.91 billion in FY 2024.
• The Group’s retained earnings stood at N53.17 billion as of June 2025, supported by a five-year revenue CAGR of 43% and cumulative working money move exceeding N6 billion.

In accordance with the press launch, the notes could also be quoted on the FMDQ Change platform or every other acknowledged alternate, providing traders secondary market liquidity.

Understanding the yield 

The low cost price represents the share deducted from the face worth of the word at buy, whereas the efficient yield displays the precise annualized return an investor earns at maturity, making an allowance for the time worth of cash.

Since CPs are issued at a reduction and redeemed at par, the efficient yield is greater reflecting the true proportion acquire over the funding interval.

Inflation context 

With Nigeria’s headline inflation price at 18.02% as of September 2025 and the final Treasury Invoice cease charges between 15% and 15.77%, the yield premium on UACN’s Business Paper is reasonable roughly 2 to three% above authorities securities and solely marginally above inflation.

Monetary and credit score profile 

The problem is rated A- (Agusto & Co) and A (DataPro), reflecting the corporate’s robust model fairness, diversified portfolio, and enough liquidity place.

Investor takeaways 

• Average yield benefit: The UACN Business Paper presents a modest premium over comparable Treasury Payments, although the actual return above inflation stays restricted.
•  Credit score publicity consideration: Not like authorities securities, the CP carries company credit score danger, with reimbursement tied to UACN’s money flows and total monetary efficiency.
•  Credit score rankings: Rated A- (Agusto) and A (DataPro), the notes replicate good credit score high quality and reasonable danger of default.
•  Minimal entry level: The supply is focused at Certified Institutional Buyers and Excessive Internet Value People, with a minimal subscription of N10 million.
•  Liquidity benefit: Being tradable on acknowledged exchanges like FMDQ, the CP offers traders with short-term yield and potential secondary market liquidity.