Nigerian Breweries set to borrow N48bn through commercial paper to pay debts

Nigerian Breweries PLC Thursday announced it was floating a commercial paper aimed at generating capital in the neighbourhood of N48 billion from the investing public.

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

The Series 7 and 8 of the debt-raising programme of Nigeria’s biggest brewer by market value will open on 6^th April 2020, the company’s notice to the Nigerian Stock Exchange says.

Nigerian Breweries had in February inaugurated the 5^th and 6^th series through which it mobilised around N45 billion from the public.

A chance for non-equity investors to earn additional income, Series 7 and Series 8 carry 182-day and 270-day tenor respectively.

Proceeds of the offer will boost the short-term funding obligation of the brewer.

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

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