Nigerian Breweries Plc has said it will close its N15bn commercial paper programme this week, Punch Newspaper has reported.
The company opened the issuance of the commercial papers on Thursday last week in a bid to support its short-term funding requirements.
According to a statement obtained from the Nigerian Stock Exchange, the company is offering 11.59 percent and 14.43 percent yield on its 90- and 182-day commercial paper, respectively.
According to Afrinvest Securities Limited, the offer for the series 1 and 2 commercial papers, which opened on Thursday, will last for a week and close on Thursday, April 18, while the settlement date will be April 23.
The Series 1 commercial paper has a tenor of 90 days, an effective yield of 11.59 percent, a discount rate of 11.268 percent and would mature on July 22.
The Series 2 commercial paper has a tenor of 182 days, an effective yield of 14.43 percent, a discount of 13.46 percent and would mature on October 22.
The commercial papers, which were awarded Aa rating by Agusto & Co Limited and AA rating by Global Credit Ratings Co, have a minimum subscription amount of N5m and in multiples of N1,000 thereafter.
The statement read in part, “Following a successful run of the company’s first N100bn commercial paper programme, which ran from 2015 to 2018, the board of directors approved a new programme in July 2018.
“The first CP programme helped the company to reduce its overall funding costs as well as gave non-equity investors an opportunity to invest in the company.
“The second programme, which has commenced, will run for three years till March 2022 and will support the cost management initiatives of the company, complement the traditional sources of financing and provide an opportunity for non-equity investors to invest in the company.”
It added that the CPs, would after issuance be listed on the FMDQ OTC Securities Exchange to make it possible for investors to trade in them.
The company said the financial advisers for the issuance were Stanbic IBTC Capital Limited, FBN Quest Merchant Bank Limited and FCMB Capital Markets Limited.