Yemisi Izuora
Nigerian Breweries PLC has informed the Nigerian Stock Exchange, NSE, that it plans to raise fresh funds through issuance of commercial paper. The company had two months ago launched series 5 and 6 of its Commercial Paper (CP) to raise N45 billion to support its short-term funding needs.
The fresh fund to be raised is the 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 presented at the floor of the Nigerian Stock Exchange (NSE) and to the investing public.
According to the company, while series 7 will be for a tenor of 182 days, the series 8 will be for 270 days. 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. 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