Champion Breweries Plc has successfully completed the issuance of its maiden N30 billion 5-year Fixed Rate Senior Unsecured Bond. Rand Merchant Bank served as the Lead Issuing House and Bookrunner for the bond.

The bond was issued at a 19.50% coupon rate, as part of the company’s N45 billion Bond Issuance Programme. This marks a significant milestone for Champion Breweries as it continues to expand its presence and strengthen its position within Nigeria’s competitive beverage industry.

The issuance represents the first-ever bond in Nigeria’s breweries sub-sector, signaling the company’s strategic move to diversify its funding sources, fortify its capital structure, and drive sustainable growth.

A Milestone for the Breweries Sub-Sector

Champion Breweries Chairman, Imo-Abasi Jacob, described the bond issuance as a “statement of intent” for the company. He emphasized that accessing the debt capital markets not only reflects the company’s strong governance and resilient business model, but also demonstrates the confidence that investors have in the company’s long-term vision.

Jacob explained that the funds raised through this bond will serve as a catalyst for the company’s transformation, enabling the modernization of production infrastructure and strengthening the capital base. The company plans to use the proceeds to boost its competitive edge in the market, innovating and driving efficiency.

Strategic Vision for Growth

The Managing Director/CEO of Champion Breweries, Dr. Inalegwu Adoga, highlighted that the bond issuance reflects strong investor confidence in the company’s strategic direction, especially under its parent group, EnjoyCorp. Adoga outlined that the funds raised will be directed towards operational efficiency and creating opportunities that sustain the company’s leadership in Nigeria’s beverage market.

Support from Rand Merchant Bank

Chidi Iwuchukwu, Executive Director of Rand Merchant Bank Nigeria Limited, praised Champion Breweries for achieving this significant milestone, which also highlights the increasing depth of Nigeria’s debt capital markets. He noted that Rand Merchant Bank was proud to partner with the company in structuring and executing the bond issuance, leveraging their expertise in credit ratings, transaction structuring, and investor relations.

Bayo Ajayi, CEO of Rand Merchant Bank Nigeria, echoed Iwuchukwu’s sentiment, stating that the successful issuance not only reflects the sophistication of Nigeria’s debt capital markets but also demonstrates the bank’s commitment to delivering long-term funding solutions for clients.

Investor Demand and Allocation of Funds

Despite the challenging interest rate environment, the bond issuance attracted robust demand from a wide array of institutional investors, including Pension Fund Administrators, Asset Managers, Trustees, Banks, Registrars, and High Net-Worth Individuals. This strong investor interest reflects confidence in Champion Breweries’ credit quality and its long-term growth prospects.

The proceeds from the bond issuance will be strategically allocated to enhance the company’s operational efficiency, enabling it to sustain growth and deliver long-term value to all stakeholders.