Champion Breweries Redeems ₦4.21bn Paper, Affirms Liquidity Strength

Champion Breweries Plc has successfully redeemed its ₦4.21 billion Series 1 Commercial Paper Notes at maturity, marking a key milestone in the company’s short-term funding strategy and reinforcing its financial discipline.

The notes were issued under the brewer’s ₦15 billion Commercial Paper Issuance Programme and were fully redeemed on schedule, demonstrating the company’s ability to meet its financial obligations amid a challenging operating environment.

In a statement issued on Wednesday, Champion Breweries said the Series 1 Commercial Paper provided cost-effective financing that supported working capital needs, strengthened liquidity, and enhanced cash flow management during the tenor of the instrument.

The company disclosed that both Series 1 and Series 2 tranches of the Commercial Paper Programme were oversubscribed by 50 per cent, reflecting robust investor appetite and strong confidence in the company’s credit profile and operational outlook.

According to the statement, the Series 1 Commercial Paper had a tenor of 176 days and was issued at a discount rate of 21.1081 per cent, a competitive pricing level considering prevailing market conditions at the time of issuance.

Champion Breweries noted that the full and timely redemption of the paper highlights its disciplined treasury management and prudent approach to financial planning, adding that the repayment reinforces confidence among participants in the Nigerian debt capital market.

Commenting on the development, Managing Director of Champion Breweries Plc, Dr Inalegwu Adoga, said the successful redemption reflects the company’s commitment to transparency, accountability, and long-term value creation.

He explained that the strong investor response to the Commercial Paper Programme underscores market confidence in the company’s governance standards and growth strategy, adding that the company remains focused on strengthening its balance sheet while executing sustainable expansion plans.

Champion Breweries further stated that the Commercial Paper Programme remains a strategic component of its broader capital market funding mix, providing flexible access to short-term financing aligned with prevailing market dynamics.