Nigerian Breweries Plc has said it will list its ongoing N15 billion Commercial Papers (CP) issuance on the FMDQ OTC Securities Exchange to provide investors opportunity to trade on their holdings.
The firm is offering 90-day and 182-day CPs to investors with the aim of raising N15bn short-term funds for its operations.
The 90-day CPs carry effective and discount yields of 11.590 per cent and 11.2680 per cent respectively while the 182-day CPs carry 14.430 per cent and 13.4614 per cent respectively. Both issuances have been rated Aa by Agusto and AA by Global Credit Rating (GCR).
The Series 1 90-day CPs are expected to mature on Monday July 22, 2019 while the Series 2 182-day CPs will mature on Tuesday, October 22, 2019. The offers opened on Thursday, April 11, 2019 and will close on Thursday, April 18, 2019. The settlement date is Tuesday, April 23, 2019.
Speaking at the weekend, Nigerian Breweries’ Secretary and Legal Director, Uaboi Agbebaku, said that the new CP programme would support the company’s cost management and complement traditional sources of financing to include non-bank financing options.
He added that CPs also provide opportunity for non-equity investors to invest in the company.
He said that following the success of the company’s first N100bn CP programme between 2015 and 2018, the board of directors of the company approved a new N100 billion programme last July.