Business
Nigerian Breweries in need of N25 billion, seeks new investors
Nigerian Breweries has disclosed that the company is in need of N25 billion to meet its capital requirement for the brewer’s operation.
The drink producer made this known in a corporate document obtained on Wednesday from the capital market authority, Nigerian Exchange Limited (NGX), but dated May 2.
Nigerian Breweries said the N25 billion will be borrowed through the issuance of the Commercial Paper Programme with the launch of Series 4, 5 and 6 of the CP Programme that opened on April 28, 2023, and will close on May 3, 2023.
Investors interested in the Commercial Paper funding raising will have to cough up a minimum of N5 million. The firm said this will create additional opportunities for existing and new investors to invest in Nigerian Breweries.
Part of the fund will be disbursed to cover Nigerian Breweries’ short-term working capital and funding needs under these Series.
READ ALSO: Nigerian Breweries’ majority investor in Nigeria, Kolawole Jamodu, to exit firm
“Nigerian Breweries Plc (“the Company”) is pleased to inform the investing public of the continuation of its Commercial Paper (“CP”) Programme with the launch of Series 4, 5 and 6 of the CP Programme that opened on 28th April 2023 and closes on 3rd May 2023.
“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.
“The CP Programme continues to provide an additional opportunity for existing and new investors to invest in the Company as well as support the Company’s cost management initiatives and serve as an additional source of funding for the Company,” Nigerian Breweries wrote in the document.
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