Nigerian Breweries Plc has successfully raised N17.7 billion under its three-year N100 billion Commercial Paper (CP) programme. The N17.7 billion has a yield of 12.50 per cent per annum.
According to the company, the offer, which closed on October 8, following strong institutional investor participation, demonstrates confidence in the Nigerian Breweries story.
The Nigerian Breweries CP programme is a significant addition to the Nigerian capital market. The success of the maiden issuance represents the strong acceptance of the issue in the market, which is further evidenced by the diverse category of investors to whom the securities were distributed (including asset managers, insurance companies, trustees and banks).
Finance Director of Nigerian Breweries Plc, Mark Ruttenhas said the transaction provides the company the ability to periodically access alternative debt funding at rates mirroring money market and Treasury bill yields. “This also serves to help bring down overall funding costs, which complement the company other sources of working capital whilst diversifying its funding sources to include non-bank investors.