Champion Breweries to issue N20bn bonds

Champion Breweries Plc has received shareholder approval to raise N20bn in funding via bond issuances, to enable it to expand its operations.

The firm disclosed in a statement on Thursday that the resolutions were passed at the company’s recently concluded extraordinary general meeting.

The approved funding includes the issuance of up to 1,579,058,099 ordinary shares to meet the Nigerian Exchange Limited free float requirement, which is expected to improve market liquidity, fund key infrastructure projects, expand production capacity, and enhance operational efficiency.

The firm will also be launching an N15bn bond programme and an N5bn series 1 bond issuance through a dedicated funding vehicle.

According to the brewer, these bonds will provide the financial foundation for the company’s long-term growth and operational stability.

Champion Breweries Chairman, Imo-Abasi Jacob, described the approvals as transformative, saying, “These approvals represent a bold and necessary step for Champion Breweries as we position ourselves for the next phase of growth. With the backing of our shareholders, we are well-equipped to enhance our operational capacity, meet regulatory requirements, and deliver exceptional value to all our stakeholders. This marks the beginning of an exciting new chapter in our journey.”

Also, the Managing director/Chief Executive Officer of the firm, Inalegwu Adoga, emphasised the significance of the funding.

“Today marks a historic moment for Champion Breweries. With the approval of these resolutions, we are not only ensuring compliance with regulatory requirements but also setting the stage for an exciting future. These steps will allow us to enhance our operational capacity and unlock significant growth opportunities for our stakeholders,” he noted.

According to the brewer, with this N20bn funding secured, it is positioned to strengthen its market presence, improve operational efficiency, and deliver long-term value to shareholders and the broader community.

Champion Breweries hinted in October that it would be issuing new shares to the investing public to address its free-float deficiency on the Nigerian Exchange Limited.