Nigerian Breweries Plc N16.49 billion Series 1, N5.03 billion Series 2, and N45.74 billion Series 3 Commercial Papers (CPs) under its N100 billion CP Programme were admitted on the FMDQ Securities Exchange Limited platform on January 30, 2023.
The brewer’s CPs met the FMDQ Exchange Commercial Paper quotation requirements and were approved by the Board Listings and Markets Committee of FMDQ Securities Exchange Limited (FMDQ Exchange).
FMDQ disclosed that in other to guarantee sustained business operations in the current challenging economic environment, corporate institutions have continued to explore alternative financing options by tapping the debt capital market, to plug capital shortfalls.
Access to capital remains a top priority for corporates, as capital is required to meet short-term debt obligations such as working capital needs, funding expansion aspirations and existing debt obligations.
The Commercial Paper (CP) market satisfies this requirement by providing competitive and timely access to capital, thereby helping corporates diversify their funding sources.
Through the registration of this CP Programme, which is sponsored by Stanbic IBTC Capital Limited (the Lead Sponsor), FCMB Capital Markets Limited and FBNQuest Merchant Bank Limited, all Registration Member (Quotations) of the Exchange, the Issuer is availed the opportunity to raise short-term finance from the Nigerian debt markets at a time it deems suitable, through CP issuances, within the CP Programme limit.
As a Securities Exchange with a commitment to facilitate growth and development in the Nigerian debt markets and the economy at large, FMDQ Exchange said it will continue to sustain efforts in ensuring that corporates have uninterrupted access to a credible, efficient, and robust platform for the registration, listing, quotation, and trading of debt securities.
Recall, according to a statement released on the Nigerian Exchange signed by Uaboi G. Agbebaku, the company’s secretary, NB said the Commercial Paper (“CP”) Programme is in Series 4, 5 and 6 and will be opened for investing public from 28th April 2023 and closes on 3rd May 2023.
The statement reads: “Series 4 is for a tenor of 95 days (with an implied yield of 12.5%), Series 5 for 186 days (with an implied yield of 13%), and Series 6 for 228 days (with an implied yield of 14%). The minimum subscription is N5m and multiples of N1,000 thereafter.
The Company aims to raise up to about N25 billion to support the Company’s short-term working capital and funding needs under these Series.
FMDQ Securities Exchange Limited last year welcomed the registration of the Nigerian Breweries Plc N100.00 billion Commercial Paper (CP) Issuance Programme on its platform in August 2022.
Nigerian Breweries is the pioneer and largest brewing company in Nigeria, engaged in the making and selling of lager, stout, non-alcoholic malt, and soft drinks. Nigerian Breweries operates over ten (10) breweries and approximately two (2) malting plants across the country.