Nigerian Breweries Plc has launched a new phase of its N100 billion commercial paper programme, allowing the firm to raise N20 billion from investors.
The capital raise comes in three series of varying maturities: the first has a tenor of 91 days, the second 120 days and the third 154 days.
Typically unsecured, commercial papers provide corporations with an opportunity to borrow from investors to meet short-term financial obligations at a fixed interest rate.
Nigerian Breweries said the debt will cater for its “short-term funding needs.”
“The CP Programme continues to provide the opportunity for non-equity investors to invest in the company, support the company’s cost management initiatives and serve as an additional source of funding for the company,” it added.
In December, the brewer announced a proposal to issue about 2.1 billion ordinary shares to reward stockholders in the proportion of 1 new share for every 4 currently held. It hopes to achieve that by setting aside over N1 billion from the share premium account, which had a balance of N77.5 billion as of the end of 2021.