NB Plc to raise additional N20 billion from its N100 billion Commercial Paper

Nigerian Breweries has announced the continuation of its N100 billion Commercial Paper (CP) Issuance Programme in a bid to raise up to N20 billion to support its short term funding needs. The company has launched Series 9 and 10 of the programme for this purpose.

This information was disclosed in a notification signed by the Company’s Secretary, Uaboi G. Agbebaku, and sent to the Nigerian Stock Exchange.

The notification reads;

“[Nigerian Breweries Plc] is pleased to inform the Nigerian Stock Exchange and the investing public of the continuation of its “CP” (Commercial Paper) programme with the launch of Series 9 and 10 of the programme.

“Series 9 of the Commercial Paper programme would be for a tenor of 180 days, while Series 10 would be for 270 days. However, the launch of the CP opens today 23rd October 2020.”

(READ MORE:Nigerian Breweries stock up by 58% since August )

What you should know

According to data obtained from Financial Market Dealers Quote (FMDQ), Nigerian Breweries has raised up to N90.12 billion since the start of the year.

• N52.76 billion was raised from Series 6 between February 12 to November 6, 2020.
• N13.03 billion was raised from Series 7 from April 15 to October 14, 2020.
• N24.33 billion 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.

Why it matters

• The CP will help the company navigate through the recent impact of COVID-19 and other trade disruptions.
• The programme will strengthen the balance sheet of the company, and enable the brewer to execute its plans while delivering value to customers and creating wealth for shareholders,
• In like manner, the CP programme is expected to provide opportunities for non-equity investors to invest in the company and support its cost management initiatives.