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HomeBusiness NewsNigerian Breweries To Raise 15 Bln Naira From Commercial Paper

Nigerian Breweries To Raise 15 Bln Naira From Commercial Paper

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Nigerian Breweries PLC, local unit of Heineken Brewer has again approached the market to raise up to 15 billion naira through 91-day and 172-day tenor commercial paper.
The offer which opened on Monday has an implied yield of 13.50 percent for the 91-day paper and 13.75 percent for the 172-day debt.

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According to the notice of the offer, bids will close on June 28, while settlement day is June 31.
The commercial paper was the third and fourth series being offered under the company’s renewed 100 billion programme.
The brewer had in April this year raised 15 billion naira in 91-day and 182-day series one and two paper at yields of 11.59 percent and 14.43 percent.
The debt is meant to support the company’s short-term funding requirements.
Investors who are interested in subscribing to the paper have to possess a minimum entry of five million naira
Commercial paper is a short-term debt note deploy by blue-chip firms to bridge their financial needs and reduce cost of borrowing from commercial lenders.
The debt note is unsecured loan subscribed to by individuals or institutional investors who are seeking higher yields for their short-term funds through such investment channel.
Nigeria Central bank reports showed that many banks have slowed down on extending credit to the private sector, with many of them preferring to invest their surplus funds in fixed income assets.

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