By Dipo Olowookere
The management of Nigerian Breweries Plc has disclosed that it intends to raise up to N48 billion from the sale of commercial papers.
In a disclosure to the Nigerian Stock Exchange (NSE) on Thursday, the company said the sale of the papers will commence from next Monday.
It further said this exercise will allow those not interested in buying stocks have the opportunity to invest in the business with the hope of making profit.
In the disclosure sent to the investing community through the exchange today, the brewery giant said the commercial paper will be issued in two maturities.
Nigerian Breweries noted that the debt instrument would come in Series 7 and 8, stating that while Series 7 would be for a tenor of 182 days, Series 8 would be for 270 days.
It expects to use proceeds from the exercise to support the company’s cost management initiatives and run its operations.
“Nigerian Breweries Plc is pleased to inform the Nigerian Stock Exchange and the investing public of the continuation of its Commercial Paper (CP) programme with the launch of Series 7 and 8 of the programme which opens on April 6, 2020.
“While Series 7 would be for a tenor of 182 days, Series 8 would be for 270 days.
“The CP Programme aims to raise up to a maximum of N48 billion to support the company’s short-term funding needs.
“The CP Programme continues to provide the opportunity for non-equity investors to invest in the company, support the company’s cost management initiatives and serve as an additional source of funding for the company,” the statement said.
Business Post recalls that in January 2020, Nigerian Breweries announced its intention to raise N45 billion from commercial papers in Series 5 and 6. One of the main aims of the January exercise was to assist in the reduction of the firm’s “cost of fund.”
In the Series 3 and 4 issued in June 2019, the sum of N15 billion was the target and it was also for the trimming of its funding cost.
Adedapo Adesanya