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UAC Nigeria's N54B bond listing lifts stock and reshapes corporate strategy

A bold N54B bond move sends UAC's shares soaring by 15%. How this debt strategy and restructuring could redefine Nigeria's FMCG giant's future.

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2 min read
The image shows the Financial Bonds Information logo, which consists of white text on a blue...
The image shows the Financial Bonds Information logo, which consists of white text on a blue background. The text reads "Financial Bonds Information" in a bold, sans-serif font. The blue background is a bright, vibrant hue that stands out against the white text. The logo is simple yet eye-catching, conveying a sense of trustworthiness and reliability.

UAC Nigeria's N54B bond listing lifts stock and reshapes corporate strategy

UAC of Nigeria Plc has listed a N54.03 billion bond on the FMDQ Securities Exchange. The 7-year, fixed-rate bond carries a 17.35% interest rate and marks a key step in the company's long-term funding strategy. Investors have responded positively, with the firm's stock price climbing since the announcement.

The bond forms part of UAC's N150 billion Debt Issuance Programme. Its purpose is to secure long-term funding from Nigeria's debt capital market, diversifying the company's financial base. Proceeds will go towards refinancing existing debt, funding capital projects, and boosting working capital to enhance operations and expand capacity.

The issuance has already had a visible impact. Since late 2025, UAC's share price on the Nigerian Exchange has risen by roughly 15%, moving from ₦22.50 to ₦25.90 as of February 6, 2026. This growth contrasts with the previous year's stagnant performance, when shares hovered between ₦20 and ₦23 amid economic uncertainty.

Alongside the bond, UAC has streamlined its corporate structure. It merged its acquisition vehicle, UAC Food and Beverage Company Limited, into C.H.I. Limited after finalising the beverage company's purchase. The move aims to simplify governance, cut administrative layers, and clarify financial reporting.

Market analysts view the bond as a sign of confidence in UAC's fundamentals and strategy. It reduces refinancing risks while aligning funding with the company's growth plans. The restructuring also positions UAC to better leverage synergies within its fast-moving consumer goods (FMCG) portfolio, particularly through C.H.I. Limited.

The bond listing and corporate consolidation reflect UAC's push for long-term financial stability. Share performance has improved, and the company now has greater flexibility to fund expansion and optimize operations. The changes also set the stage for stronger integration across its business divisions.

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