Agbebaku emphasised that the rights issue was aimed at eliminating forex losses from the company’s balance sheet and reducing its interest burden on local debts amid Nigeria’s 26 per cent monetary policy rate.
He explained that the proceeds would be used to settle the company’s payables, including N328bn in forex debts and N263bn in local debt repayments.
“Our FX losses are substantial, and clearing these obligations will stabilise our profit and loss accounts. We are also working to reduce local bank debts. The impact of that is that it will eventually reduce the interest burden that we are carrying, which has been a significant financial strain,” he said.
The PUNCH reports that Nigerian Breweries suffered a N153bn forex loss in 2023 due to the devaluation of the naira.
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