Interested in investing in commercial papers in Nigeria’s largest brewer? The Nigerian Breweries Plc. on Thursday started a quest to raise N15 billion through issuance of new commercial papers (CPs). This forms part of the company’s N100 billion Commercial Papers programme.
Terms of the Offer
The offers are going to be of two types: one would be 90-day commercial papers and the other 182-day CPs. The 90-day CPs attract effective discount yields of 11.590 per cent and 11.2680 per cent respectively while the 182-day CPs carry 14.430 per cent and 13.4614 per cent respectively.
The issuances have been rated Aa by Agusto and AA by Global Credit Rating (GCR).
The 90-day CPs are going to fully mature on Monday July 22, 2019 while the 182-day
CPs will mature on Tuesday, October 22, 2019.
The offers opened last Thursday and will close on Thursday, April 18, 2019. The settlement date is Tuesday, April 23, 2019.
This new fund raising coming on barely some days after the decision of the board of Nigerian Breweries to pay out the entire net profit of N19.4 billion recorded in 2018 as cash dividend to shareholders for the business year, despite drop in the performance of the company.
Shareholders will receive final dividend of N14.6 billion in addition to N4.8 billion earlier paid by the company. A breakdown showed that shareholders will receive a final dividend per share of N1.83 in addition to interim dividend of 60 kobo, bringing total dividend per share for the year to N2.43.
Charles Rapulu Udoh
Charles Rapulu Udoh a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organisations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution and data analytics both in Nigeria and across the world.
1 thought on “Nigerian Breweries PLC Issues Commercial Papers”