NIGERIA – Nigerian Breweries has announced the continuation of its Commercial Paper Programme with the launch of N48bn (US$123.3m) Series 7 and 8 which is set to open on the 6th of April, 2020.
This comes barely two months after the brewing giant launched series 5 and 6 Commercial Paper (CP) to raise N45 billion (US$115.6m) in February. The company has successfully concluded Series 1 to 4 of its renewed N100 billion (US$256.8m) CP programme.
In a statement, the company said that while Series 7 would be for a tenor of 182 days, Series 8 would be for 270 days, aimed to support the Company’s short terms funding needs.
The Commercial Paper programme will continue 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.
According to the brewer, this Commercial Paper is mainly targeted at high net worth individuals, institutional investors which include pension and non-pension assets managers.
It will be listed on the FMDQ OTC Securities Exchange, making it possible for investors to trade on them.
A Commercial Paper is an unsecured, short-term debt instrument, issued by a corporation, typically for the financing of accounts payable, inventories and meeting short-term liabilities.
It is backed only by a promise from the issuing bank or company to pay the fixed amount stated in the document at maturity.
In its recently released financial result for full-year 2019, Nigerian Breweries Plc recorded revenue of N323 billion (US$829.7m) as against the N324.3 billion (US$833m) achieved in 2018 representing a 0.4 % decrease.
Profit for the full-year is N16.1 billion (US$41.3m) a 17% decrease from the N19.4 billion (US$49.8m) achieved in 2018.
