Here's Why United Capital Raised N15billion Months After April Fundraiser

United Capital has raised NGN15 billion from Commercial Paper through the FMDQ Securities Exchange. The commercial paper is a Series 3, which follows the previous Series 1 & 2 Commmercial Paper issued in April. United Capital had used the Commercial Paper as a source of seeking funds for the operation of the company.

AllNews learnt that the NGN15 billion raised was under a NGN20 billion programme. In April, United Capital had raised NGN5.3 billion from its Series 1 & 2 Commmercial Paper. United Capital initiated the fundraising to increase its capital base and fund its strategic initiatives.

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In a statement seen by AllNews, United Capital stated that the recent fundraising was "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. It was gathered that the fundraising was arranged by FSDH Capital Limited, United Capital and UCML Capital Limited.

The statement further disclosed that, "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."

While reacting to the Series 3 Commercial Paper, the Group Chief Executive Officer, Peter Ashade, said, "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."