Nigerian Breweries to Sell N45bn Commercial Papers For Short-Term Funding
Nigerian Breweries Plc, Friday disclosed that it is set to raise N45 billion from the local debt market through sale of commercial paper to support its short-term funding needs.
In a notification to the Nigerian Stock (NSE), the brewery giant stated that the subscription for the Commercial Papers programme, coming in Series 5 and 6, will open for sale on Monday, February 3, 2020, saying that while the series 5 would be for a tenor of 180 days, Series 6 would be for 270 days.
The notification statement reads in part; “Nigerian Breweries Plc is pleased to inform the Nigerian Stock Exchange (NSE) and the investing public of the continuation of its Commercial Paper (CP) programme with the launch of Series 5 and 6 of the programme which opens on February 3, 2020.
“While Series 5 would be for a tenor of 180 days, Series 6 would be for 270 days, and the aim is to raise up to N45 billion to support the company’s short terms funding needs.”
The Company further stated that the Commercial Papers programme which is expected to continuously provide support to its cost management initiative with the overall aim of reducing its cost of fund, is also intended to provide opportunity for non-equity investors to invest in the company, adding that it would also be a source of funding for the company.
Meanwhile, its profit after tax (PAT) for the third quarter period of 2019 recorded a 17 per cent decline to N12.2 billion when compared with N14.9 billion profit that it achieved in the same period of 2018.
Similarly, its Profit before tax (PBT) for the period fell by 23.4 per cent to N 17.2 billion, compared to N22.4 billion recorded during the third quarter of the preceding year.
In November 16, 1946, Nigerian Breweries Plc, is the pioneer and largest brewing company in Nigeria, serving the Nigerian market and while also exporting to other parts of West Africa.
Listed in the categories of consumer goods on the Main Board of the Nigerian Stock Exchange, It currently has 7,996,902,051 outstanding shares and market capitalisation of N439.83 billion. Insidebusiness