By Bashir Olanrewaju
Nigerian Breweries Plc plans to raise 20 billion naira with the resumption of its commercial papers program.
The Nigerian brewing giant’s series 9, 10 and 11 tranches opened for subscription on Monday, according to a notice posted on the website of the Nigerian Stock Exchanges. They are for the tenures of 120, 183 and 240 days respectively.
The company has so far raised 90.1 billion naira this year from the sale of commercial papers with tranches offered between February and April.
Commercial papers are unsecured debt instruments usually issued for the short term by big corporate organizations to raise funds needed to meet short term financial obligations. Apart from Nigerian Breweries, other companies that have sold commercial papers in Nigeria include Friesland Campina, MTN Nigeria and First Securities Discount House.
Commercial papers issued in Nigeria are traded over the counter on the FMDQ platform. Yields currently range between 1.39 percent and 6.43 percent.