Nigerian Breweries Plc has established a N100bn commercial paper programme as part of efforts to diversify its funding sources and optimise funding costs.
A statement by the Corporate Affairs Adviser, Nigerian Breweries, Mr. Kufre Ekanem, said the company established the programme on Monday with a view to launching its inaugural commercial paper issue on or before October 8, 2015.
The signing ceremony to mark the establishment of the programme was held at the head office of the company in Iganmu, Lagos, the statement said.
The Managing Director, Nigerian Breweries, Mr. Nicolaas Vervelde, was quoted as saying at the ceremony that, “This transaction underscores our continued commitment to winning with Nigeria and represents the largest ever commercial paper programme to be established by a (non-financial institution) corporate issuer following the 2009 guidelines on commercial paper from the Central Bank of Nigeria.
“In that regard, this effort clearly demonstrates our leadership status in the industry and an innovative approach towards executing our company’s financing strategy, in an increasingly competitive market environment.”
On his part, the Finance Director, Nigerian Breweries, Mr. Mark Rutten, explained that the programme would, among other things, complement the company’s sources of working capital.
“This programme is expected to complement our company’s other sources of working capital, whilst diversifying our funding sources to include non-bank investors that would provide Nigerian Breweries with additional tools to help manage and optimise its overall funding cost,” he said.
The statement said the signing ceremony for the programme was witnessed by representatives of the transaction advisors, Stanbic IBTC Capital Limited and FBN Capital Limited; Banwo & Ighodalo as legal counsel; KPMG as auditors to the issuer (for the relevant financial years under review), and Stanbic IBTC Bank as the issuing calculation and paying agent. Also in attendance were officials of the FMDQ OTC Plc to witness the event.
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Source : Punch