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Nigerian Breweries floats N45bn commercial paper

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Nigeria’s largest brewer, Nigerian Breweries Plc, has announced the continuation of its Commercial Paper programme by launching the Series 5 and 6 of the programme, which opened on Tuesday.

According to the alcoholic and non-alcoholic beverage maker, the Series 5 has a tenor of 180 days while the Series 6 will last 270 days.

The idea is to generate about N45 billion to enable the firm meet its short-term funding obligations.

Commercial Papers are debt instruments issued by large corporations to source funds aimed at meeting short term debt obligations.

They are backed only by a promise from the issuing bank or company to pay the fixed amount stated on the document at maturity.

The Series 5 and 6 are the latest tranche of Nigerian Breweries N100 billion CP programme, the Series 1 to 4 were successfully concluded in 2019.

Read also: Cadbury’s full-year profit up by 54% despite modest growth in revenue

“In addition to providing an opportunity for non-equity investors to invest in the company, the CP programme continues to support the Nigeria Breweries 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,” the firm’s notification to the Nigerian Stock Exchange (NSE) read.

Incorporated in 1946, Nigerian Breweries today operates 11 breweries, two malting plants and 26 sales depots within the country. Its asset base as of September 30, 2019 was about N382.016 billion and total equity in excess of N164.031 billion.

Heineken N.V holds the majority stake of 55.95 percent in the company while Nigerian and foreign individuals and association hold roughly 44.05 percent.

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