Nigerian Breweries Plc, one of Nigeria’s bottled drinks manuacturing companies, has launched its Series 1, 2, and 3 commercial papers under its N100 billion commercial paper programme.
The Company Secretary, Barr. Uaboi Agbebaku, stated that the commercial papers were launched on Wednesday, and would last for 91 days, 120 days, and 154 days, respectively.
According to him, the CP programme is aimed at raising N20 billion to support the company’s short-term funding needs.
Agbebaku stated: “Nigerian Breweries Plc is pleased to inform The Nigerian Exchange Limited and the investing public of the issuance of its Commercial Paper (“CP”) program with the launch of Series 1, 2, and 3 of the program under its N100 billion CP program which opens on 11th January 2023.”
“Series 1 would be for a tenor of 91 days, Series 2 would be for 120 days and Series 3 would be for 154 days. The CP Programme aims to raise up to N20 billion to support the Company’s short-term funding needs”, he added
On the benefits of the funding initiative, Agbebaku maintained that the launch of the CPs would not only help the company to raise funds for its operations but held great return potential for the investing public, especially non-equity investors.
He further clarified: “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.”
It would be recalled that FMDQ Securities Exchange had in May 2022 announced the approval for the quotation of Nigeria Breweries Plc and 8 other Commercial Papers.
Based on the series of verified disclosures from the FMDQ Exchange, the brewer then secured approval for N1.05 billion Series 12, N0.94 billion Series 13 and N2.67 billion Series 14 CPs under its N100 billion CP Issuance Programme.
The management believes that the latest launch of the series 1, 2, and 3 commercial papers will go a long way in helping the company to not only raise short term capital to support its business operations, but to also enjoy other benefits such as visibility and liquidity that come with being quoted on the FMDQ Exchange.
