Nigerian Breweries unveils Series 9 and 10 Commercial Papers to raise additional US$52.5m
Nigerian Breweries, the largest brewing company in Nigeria, has launched its series 9 and 10 Commercial Paper (CP) program for subscription by investors as a continuation of its N100 billion (US$262m) CP program, aimed to raise up to N20 billion (US$52.50m).
According to Nigerian Breweries, “The CP Program 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.”
Reports by Naira Metrics shows the funding will be used to support the Nigerian Breweries short-term funding needs as it navigates through the recent impact of COVID-19 and other trade disruptions. The program which opened on 23rd October 2020 will comprise of a tenor of 180 days for Series 9 while Series 10 would be for 270 days.
According to data obtained from Financial Market Dealers Quote (FMDQ), Nigerian Breweries has raised up to N90.12 billion (US$236.5m) since the start of the year; N52.76 billion (US$138.47m) was raised from Series 6 between February 12 to November 6, 2020, while N13.03 billion (US$34.20m) was raised from Series 7 from April 15 to October 14, 2020; an added N24.33 billion (US$63.85m) was raised from Series 8 from April 15 to January 8, 2021. The recent issuance of the Series 9 and 10 CP will bring the total funds raised to N110.12 billion (US$289m).
The Nigerian Breweries half year results for 2020 shows that revenues stood at N152 billion (US$ 393.56 million), a significant drop compared to the N170 billion (US$ 440.17 million) recorded in the corresponding period of 2019.
The Company is engaged in brewing, marketing and selling of lager, stout and non-alcoholic malt drinks including Star, Gulder, Legend Extra Stout, Maltina, Malta, Heineken, Amstel Malta and others.