Nigerian Breweries Plc has set plans to raise N15 billion in the first and second series of its N100 billion Commercial Paper (CP) programme to support short-term funding.
In a statement on the Nigerian Stock Exchange (NSE), signed by the Company Secretary/Legal Director, Uaboi Agbebaku, stated that the offer for the series 1 and 2 commercial papers, which opened on Thursday, April 11, 2019, will close on Thursday, April 18, 2019 while the settlement date is Tuesday, April 23, 2019.
The Series 1, which is for 90 days, has an effective yield of 11.59 per cent and a discount rate of 11.27 per cent will mature on July 22, 2019. On the other hand, the Series 2, which is for 182 days, has an effective yield of 14.43 per cent and a discount of 13.46 per cent will mature on October 22, 2019.
Both issuances have been rated Aa by Agusto & Co Limited and AA by Global Credit Rating Co (GCR).
According to Agbebaku, “Following a successful run of the Company’s first N100 billion CP programme which ran from 2015 to 2018, the Board of Directors had approved a new programme in July, 2018. This second programme, which has now commenced with the launch of Series 1 and 2 on April 11, 2019, will run for three years till March 2022.
“The first CP programme helped the Company to reduce its overall funding costs as well as gave non-equity investors an opportunity to invest in the Company.
“This new CP programme would again support the cost management initiatives of the Company, complement the traditional sources of financing to include non-bank financing options and provide an opportunity for non-equity investors to invest in the company. The CPs will, after issuance, be listed on the FMDQ OTC Securities Exchange, thus making it possible for investors to trade them.”