MON, APRIL 15 2019-theG&BJournal- Nigerian Breweries Plc (NB PLC) weekend announced the launch of a fresh Series 1 and 2 N100 billion Commercial Paper (CP) aimed at raising up to N15 billion to support the company’s short term funding requirements.
The Series 1 and 2 CP programme which opened on the 11th of April 2019, are 90 days and 182 days tenors respectively.
The Board of Directors of the biggest brewer in Africa’s largest economy approved the new programme following a successful run of the company’s first N100 billion CP programme which ran from 2015 to 2018. This new programme will run for three years till March 2022, the company said.
According to NB Plc, 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.
NB Plc said the new CP programme would also support the company’s cost management initiative and complement the traditional sources of financing to include non-bank financing options. The CPs will be listed on the FMDQ OTC after issuance for investors to trade in them.
NB Plc had obtained ‘’Aa’’ rating from Nigeria’s foremost rating Agency, Agusto & Co Limited prior to the renewal of the CP programme as well as ‘’AA’’ from Global Ratings Co. The financial advisers to the new CP programme are Stanbic Capital Limited and FCMB Capital Markets Limited.
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