Investors, irrespective of their types and business interests, are always on the look out for investment opportunities which they expect to yield future financial returns. Such investors do not have to wait any longer as the Nigerian Breweries Plc (NB) is offering them a great opportunity to trade their holdings on FMDQ OTC Securities Exchange. This, the company plans to do with the listing of its ongoing N15 billion Commercial Papers (CPs) issuance.
What you should know about the CPs: As part of the company’s N100 billion CP programme, it is offering 11.590% and 11.2680% discount yields on its 90-day CPs, while the 182-day CPs carry 14.430% and 13.4614% respectively.
The settlement had already been done on Tuesday, April 23, 2019, after the offers opened on Thursday, April 11, 2019, and closed on Thursday, April 18, 2019.
[READ MORE: Nigerian Breweries set to raise N15bn through CP issuance.]
Maturity date: The Series 1 90-day CPs will mature on Monday, July 22, 2019, while the Series 2, 182-day CPs will mature on Tuesday, October 22, 2019.
Meanwhile, both issuances were rated Aa by Agusto and AA by Global Credit Rating (GCR).
Reasons why the company is raising funds through CPs: According to an official statement released by the company, the funds are being raised to support its short-term funding requirements.
The statement also read, “In addition to providing an opportunity for non-equity investors to invest in the Company, the CP programme continues to support the Company’s cost management initiatives with the overall aim of reducing its cost of fund. The CP also serves as an additional source of funding for the Company.”
[READ ALSO: Nigerian Breweries to pay shareholders N14.6bn, after earlier paying an interim dividend.]
Recall that the brewing company had disclosed its intention to raise up to N15 billion in the third and fourth series of its N100 billion Commercial Paper (CP) programme.
Both the series 3 and 4 commercial papers,which opened on Monday, June 24, 2019, have a tenor of 91 days and 172 days, respectively.
About the company: Nigerian Breweries Plc is one of country’s leading brewers competing with the likes of International Breweries and Guinness Nigeria Plc for market share. In quarter 1 of 2019, the company reported a revenue of N91.3 billion as well as a profit after tax of N8 billion.
