Nigerian Breweries have changed its plan for the company's Commercial Paper which the brewer wants to use to raise funds. Nigerian Breweries had outlined tenor for the fundraising in an earlier statement last week but changed the tenor duration.
According to a recent statement seen by AllNews, Nigerian Breweries said it has rearranged the next tranche of its Commercial Papers, which is an unsecured, short-term debt issued by a company to raise funds. Investors exchange commercial paper for funds.
Commercial paper is usually issued at a discount from face value and reflects prevailing market interest rates, according to Investopedia. Nigerian Breweries plans to use the paper to obtain about NGN20 billion in different batches.
In an early statement to the investing public and the Nigerian Stock Exchange (NSE), Nigerian Breweries said it will continue its "Commercial Paper programme with the launch of Series 9 and 10 of the programme which opens on 23rd October 2020. While Series 9 would be for a tenor of 180 days, Series 10 would be for 270 days."
But that has now changed, as Nigerian Breweries said, "We hereby inform The Exchange and the investing public of a rearrangement of the next tranche of the Nigerian Breweries Plc’s Commercial Paper (“CP”) programme. The CP will now open today, 26th October 2020 and will be launched in three Series - 9, 10 and 11.
"While Series 9 would be for a tenor of 120 days, Series 10 and 11 would be for 183 days and 240 days respectively. Other details communicated in our earlier notification remain unchanged."