Nigerian Breweries Sells N15bn CPs to Cut Funding Cost
By Modupe Gbadeyanka
As part of efforts to support its cost management initiatives, Nigerian Breweries Plc has announced the floating of N15 billion worth of commercial papers.
The notes, to be issued to investors in two different series; series 3 and series 4, are under the nation’s brewery giant’s renewed N100 billion commercial paper programme launched earlier in 2019.
A notice to the Nigerian Stock Exchange (NSE) disclosed that the Series 3 would be for a tenor of 91 days, while the Series 4 would be for 172 days.
The company noted that the sole aim of issuing the commercial papers is reduce its cost of fund and then support the smooth running of its operations.
Nigerian Breweries stated that subscriptions for the N15 billion worth of the Series 3 and 4 commercial paper programme opened on June 24, 2019.
“Nigerian Breweries Plc is pleased to inform the Nigerian Stock Exchange (NSE) and the investing public of the continuation of its Commercial Paper (CP) programme with the launch of Series 3 and 4 of the programme which opened on the 24th of June, 2019.
“While Series 3 would be for a tenor of 91 days, Series 4 would be for 172 days, and the aim is to raise up to N15 billion to support the Company’s short terms funding needs.
“Earlier this year, the Company had successfully concluded the Series 1 and 2 of its renewed N100 billion CP programme.
“In addition to providing an opportunity for non-equity investors to invest in the company, the CP programme continues to support the company’s cost management initiatives with the overall aim of reducing its cost of fund. The CP also serves as an additional source of funding for the company,” the statement signed by the company secretary, Mr Uaboi Agbebaku, said in the statement.