As part of its ongoing efforts to consolidate its acquisition and merger, Nigerian Breweries (NB) Plc has raised N17.7 billion through commercial paper.
The new fund raised at an interest rate of 12.5 per cent per annum was the fallout of the brewery giants N100 billion commercial paper programme established in 2013.
According to the company, the commercial paper is a value added capital raising window to the Nigerian capital market.
“The success of the maiden issuance represents the strong acceptance of the issue in the market, which is further evidenced by the diverse category of investors to whom the securities were distributed,” Mark Rutten, Finance Director of NB said.
The investors include asset managers, insurance companies, trustees and commercial banks.
Mr. Rutten said the transaction provides NB the ability to periodically access alternative debt funding at rates mirroring money market and Treasury bill yields. He said also that commercial paper helps in reducing overall funding costs and complement the company’s other sources of working capital through funds sources diversification.
“Our commercial paper issuances in the local markets will help to effectively manage and support the short term funding requirements of the Company”, he added.
Premium Times learnt that the notes will be quoted on the FMDQ OTC platform to facilitate active secondary trading in commercial papers, as it is a dedicated over-the-counter platform that promotes liquidity of publicly issued securities
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