Nigerian Breweries Eyes Alternative Funding To Reduce Interest Burden

Nigerian Breweries Plc has announced plans to seek shareholders’ approval for an amendment to Article 81 of its Articles of Association, aimed at revising the company’s borrowing limits and financing options to enhance financial flexibility.

The proposed amendment, set to be presented at the company’s upcoming Annual General Meeting (AGM), seeks to grant the Board of Directors greater authority in securing funding. This includes the ability to mortgage or charge company assets and issue securities to optimize capital access for operations and expansion.

Speaking at the company’s Pre-AGM media briefing, Managing Director/CEO, Mr. Hans Essaadi, acknowledged the company’s financial challenges, including debt levels and high interest burdens.

However, he reaffirmed the company’s commitment to overcoming these challenges through decisive actions.

“You would have seen from the notice of AGM that one of the items on the agenda is a request for shareholders’ approval to amend the borrowing clause in our Articles of Association,” Essaadi stated.

He emphasized that the amendment would provide the board with increased flexibility in sourcing funds from alternative market sources at more competitive interest rates, ultimately reducing financial strain.

“We are also in a position to recommence full operations in the two mothballed brewery locations when market conditions make it imperative for us to do so,” he added.

Under the revised provision, the company’s total outstanding borrowings—excluding temporary loans obtained from its bankers or alternative financing sources in the ordinary course of business—must not exceed two and a half times the sum of its paid-up share capital and reserves without prior approval from shareholders.

However, lenders and third parties transacting with the company will not be required to verify compliance with this limit unless formally notified of any excess.

The proposed amendment aligns with Nigerian Breweries’ broader strategic objectives of maintaining a sustainable capital structure while ensuring the company remains agile in meeting its financing needs.

Shareholders will have the opportunity to vote on this resolution at the forthcoming AGM.

The Human Resource Director, Nigerian Breweries Plc, Grace Omo-Lamai reaffirmed the company’s commitment to fostering a safe, caring and inclusive work environment.

According to Omo-Lamai, Nigerian Breweries Plc remains a great place to work and the leading employer of labour in Nigeria. It offers diverse opportunities for employees to grow their careers and develop the capacity to manage different roles in different spheres of life.

She described the company as a place that breeds a culture of passion, diversity, and inclusivity as it recognises the importance of employees’ contributions to the overall growth of the business.

She remarked that the company has created an environment where all employees, regardless of gender or background, feel valued and empowered to contribute their best or perform optimally for greater productivity.

On the issue of capacity development, she stated that the company occasionally initiated a series of programs to help enhance the capacity of its workforce to perform excellently. She noted that the company had invested a significant part of its resources over the last 12 months in building capacity to unlock the potential of its workforce.

Omo-Lamai also revealed that the company has consistently demonstrated its commitment to excellence over the last few years by ensuring that outstanding employees are rewarded and motivated to keep up the hard work and remain dedicated to the company’s overall goal.

“We will continue to engage, equip and motivate our employees so that they will be inspired to give their best and improve the company’s performance. As a company, our dedication to gender equality remains unwavering, and we believe that diversity and inclusion are essential for success and innovation,” She noted that the company, over the last 12 months, had invested a significant part of resources to building capacity to unlock the potential of its workforce”, he said.

She noted that the welfare and safety of its workforce remain at the core of the business, stating that it has empowered employees to own their overall well-being and safety.

Nigerian Breweries Eyes Alternative Funding To Reduce Interest Burden is first published on The Whistler Newspaper