Nigerian Breweries to raise more funds

Deprecated: mb_convert_encoding(): Handling HTML entities via mbstring is deprecated; use htmlspecialchars, htmlentities, or mb_encode_numericentity/mb_decode_numericentity instead in /var/www/nairametrics/wp-content/themes/nairametrics/functions.php on line 104

Barely two months after brewery giant, Nigerian Breweries Plc launched series 5 and 6 Commercial Paper (CP) to raise N45 billion to support its short-term funding needs, the multinational firm is set to launch series 7 and 8.

The CP programme, which will open on April 6, 2020, is aimed at raising a maximum amount of N48 billion in order to support the company’s short term funding needs.

This was disclosed in a notification signed by Nigerian Breweries Plc’s company secretary, Uaboi G. Agbebaku and sent to the Nigerian Stock Exchange (NSE) and the investing public on April 2, 2020.

According to the company, while series 7 will be for a tenor of 182 days, the series 8 will be for 270 days.

[READ MORE: Nigerian automaker raises $9 million despite protest against electric car in Nigeria)

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.

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.

[READ ALSO: Field Intelligence raises $3.6 million to take advantage of pharmacy cravings in Nigeria)

In its recently released result for full-year 2019, Nigerian Breweries Plc recorded revenue of N323 billion as against the N324.3 billion achieved in 2018. This represents a 0.4 % decrease.  Profit for full-year 2019 is N16.1 billion as against the N19.4 billion achieved in 2018. This represents a 17% decrease.