Nigerian Breweries to raise N25bn in  through commercial paper

By Cynthia Ezekwe 

Nigerian Breweries Plc has disclosed its plan to raise N25 billion from commercial paper issuance to support the company’s short-term working capital and other funding needs.

The brewing company informed the Nigerian Exchange Limited and the investing public of the continuation of its Commercial Paper (CP) Programme with the launch of Series 4, 5 and 6 of the CP Programme.

A statement signed by Uaboi Agbebaku, the company secretary, said the series of commercial papers opened on Friday, April 28, 2023, and closes on Wednesday, May 3, 2023.

The statement disclosed that Series 4 is for a tenor of 95 days, with an implied yield of 12.5 per cent;  Series 5 is for a period of 186 days, with an implied yield of 13 per cent; while Series 6 is for a period of  228 days, with an implied yield of 14 per cent.

The company also  noted that the minimum subscription is N5 million and multiples of N1,000 thereafter.

According to Nigerian Breweries, the CP Programme continues to provide an additional opportunity for existing and new investors to invest in the company as well as support the company’s cost management initiatives and serve as an additional source of funding for the Company.