Champion Breweries taps debt market with N30B bond

A brewery just pulled off a major first with a giant bond. Champion Breweries placed its debut bond issue, raising thirty billion naira over five years at a nineteen-point-five percent coupon rate. Rand Merchant Bank led the deal as the main arranger. This move under a larger forty-five billion naira program marks the first-ever bond from a player in Nigeria's brewery sector. The company's chairman, Imo-Abasi Jacob, called it a statement of intent beyond just financing, showing investor trust in their business model and governance. He said the funds will act as a catalyst for transforming operations, modernizing production, and strengthening their capital base to compete more effectively.

The managing director, Inalegwu Adoga, linked the successful raise to confidence in their strategic direction under their parent company, EnjoyCorp. He stated the capital will drive operational efficiency and unlock growth to keep their market leadership. Officials from Rand Merchant Bank, including Chidi Iwuchukwu and Bayo Ajayi, highlighted the deal's significance for market depth, praising the collaborative execution and robust investor appetite. Despite tricky interest rates, demand was strong from pension funds, asset managers, banks, and wealthy individuals. The bond proceeds are earmarked for boosting operational efficiency and delivering long term value, setting a new precedent for other breweries considering the debt market.