NB establishes N100bn commercial paper programme

Nigerian Breweries (NB) plc has established a N100 billion Commercial Paper (“CP”) programme with view to launching its inaugural Commercial Paper issue under the programme on or before Thursday, October 8.

The signing ceremony to mark the establishment of the programme was held at the head office of NB in Lagos, and 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 plc as Issuing Calculation and Paying Agent. Also in attendance were officials of the FMDQ OTC Exchange to witness the event.

Speaking at the signing ceremony, Nicolaas Vervelde, managing director, NB, said: “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.”

Commenting also on the significance the occasion, Mark Rutten, finance director, NB, said: “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.”