Eterna Plc to issue N10bn commercial paper funds

Eterna Plc, an integrated energy company that manufactures, markets and distributes lubricants, supplies chemicals, trades in crude oil among other services, is to issue N10 billion 270-day commercial paper (CP). In a notification to the Nigerian Stock Exchange (NSE), yesterday, Eterna Plc said the funds raised would be used for working capital and general corporate purposes.

CPs, which are unsecured promissory notes with a fixed maturity of about nine months are issued by companies to raise money to meet short term finance obligations. The notes are backed by the promise of the issuers to repay based on certain agreed terms. They present a cost-effective and stable means of sourcing scarce capital as against to bank loans and provide investors avenue to diversify their portfolios and given their short-term nature, they permitting high relative return on investment, and allow investors to remain relatively liquid.

Meanwhile, trading at the stock market turned bearish yesterday as the NSE All-Share Index fell by 0.08 per cent to close at 32,417.70, while market capitalised closed lower at N11.85 trillion. The depreciation recorded in the share prices of companies such as Unilever, Access Bank, Nigerian Breweries, Flour Mills of Nigeria, and International Breweries were mainly responsible for the decline recorded in the index.

Source: THIS DAY

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