International Breweries to raise N588bn to settle foreign debt

International Breweries Plc has said the capital raised from the sale of 161.17 billion shares through rights issue will be used to settle a dollar-denominated loan.

Carlos Coutino, Managing Director (MD) of International Breweries said, while speaking during the presentation of ‘Facts Behind The Rights Issue’ to capital market stakeholders at the Nigerian Exchange Limited (NGX) in Lagos.

It will be recalled that on May 22, International Breweries said it would offer 161,172,395,100 ordinary shares at N3.65 per share to existing shareholders to raise N588.27 billion.

Coutino said settling International Breweries’ debt through rights issue would reduce the effect of the foreign exchange (FX) volatility on the company’s earnings.

He said this approach would also minimise FX exposure, enhance cash flow, and support the company’s return to profitability.

“The rights issue will address the short-term liquidity support through financing working capital,” the MD said.

Coutino said despite the difficulties in Nigeria’s operating environment impacting the company’s financial performance in 2023, the country remains attractive.

“Nigeria will be the third most populous country of the world by 2050, according to the World Bank population data sheet,” he said

In his presentation, David Tomlinson, Finance Director of International Breweries, said the rights issue is an opportunity for shareholders to continue to invest in the success of the company, alongside AB InBev Group, its parent company.

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