Nigerian Breweries raises N17.7bn through Commercial Paper

Beer giant, Nigerian Breweries Plc has successfully raised N17.7bn from its three-year N100bn Commercial Paper (CP) programme. The annual yield on the N17.7bn is 12.5 per cent.

The company said that the offer which closed on 8th October, with strong institutional investor participation demonstrates confidence in the Nigerian Breweries story.

The Finance Director of the company, 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’s other sources of working capital whilst diversifying its funding sources to include non-bank investors. Our Commercial Paper issuances in the local markets will help to effectively manage and support the short term funding requirements of the company” he said.

The Managing Director of Nigerian Breweries, Mr. Nicolaas Vervelde, had said the establishment of the N100bn CP Programme underscored continued commitment of the company to winning with Nigeria and represents the largest ever Commercial Paper programme to be established by a (non-financial institution) corporate issuer following the 200 guidelines on Commercial Paper from the Central Bank of Nigeria.

Nigerian Breweries is the largest brewer in Nigeria with 11 breweries spread across the country and a 70 percent market share following the merger with Consolidated Breweries Plc in December 2014. Nigerian Breweries is a subsidiary of Heineken N.V, the largest brewer in Europe and the third largest by volume in the world.

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