By Dipo Olowookere
The management of Eterna Plc, one of the companies trading its shares on the Nigerian Stock Exchange (NSE), is planning to issue commercial papers worth N10 billion.
A commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable and inventories, and meeting short-term liabilities.
It is usually backed by an issuing bank or company promising to pay the face amount on the maturity date specified on the note, which is normally not more than 270 days.
In a notice to the stock market regulator today, Eterna explained that the N10 billion commercial papers it intends to issue would be used to carry out some of its operations.
“Eterna Plc, an integrated energy company that manufactures, markets and distributes lubricants, supplies chemicals, trades in crude oil, Condensates & LPG, and distributes clean petroleum products announces its proposed issuance of a N10 billion 270-day Commercial Paper(CP).
“Funds raised in the CP will be used for working capital and general corporate purposes,” the notice signed by the firm’s Managing Director, Mr Mahmud Tukur, disclosed.
Eterna Plc is a company that has acquired extensive experience over the past 30 years in the energy business and is repositioning its operations to respond to the challenges in the sector.
The firm said it is taking advantage of strategic opportunities to meet the needs of customers and increase returns to shareholders.
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