Nigerian Breweries launches N100b commercial papers

In from Success Allantee … .

Nigerian Breweries Plc, Nigeria’s second most capitalised quoted company, has established a N100 billion commercial paper programme to fund its short-term liabilities. The inaugural paper issue under the programme is expected to be launched on or before Thursday this week.

Regulatory filing indicated that Nigerian Breweries plans to use the new funding programme to complement its other sources of working capital, while diversifying its funding sources to include non-bank investors.

The programme was established pursuant to the Central Bank of Nigeria Guidelines on the Issuance and Treatment of Bankers Acceptances and Commercial Paper Quotation Rules of the FMDQ. The commercial paper notes, under the programme, will be traded over the counter via the FMDQ OTC Plc platform.

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The professional parties to the transaction included Stanbic IBTC Capital Limited and FBN Capital Limited as Transaction Advisors; Banwo & Ighodalo as Legal Counsel; KPMG Professional Services as Auditors and Stanbic IBTC Bank Plc as Issuing, Calculation and Paying Agent.

Commercial papers are tradable short-term unsecured promissory notes issued by companies to supplement working capital with their tenors not usually more than nine months.

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