Champion Breweries Plc has taken a major step in strengthening its financial position after successfully issuing a five-year fixed rate senior unsecured bond at a coupon rate of 19.50 per cent under its N45 billion bond issuance programme. The company raised about N30 billion from the exercise, drawing strong interest from a wide range of institutional and high-value investors in Nigeria’s capital market.
Market checks showed that the bond attracted participation from Pension Fund Administrators (PFAs), asset managers, trustees, a commercial bank, a registrar, as well as several High Net-Worth Individuals (HNIs). Analysts say this broad participation reflects growing investor confidence in Champion Breweries’ credit quality, corporate governance structure and long-term growth strategy under its current management team and board of directors.
Champion Breweries, which operates in Nigeria’s highly competitive beverage and breweries sector, said proceeds from the bond issuance will be used to improve operational efficiency across its business. The company explained that the funding will support key areas of production, logistics and cost optimisation, helping it sustain growth and deliver long-term value to shareholders and other stakeholders.
Industry observers have described the transaction as a landmark development, noting that it is the first time a company in Nigeria’s breweries sub-sector is accessing the debt capital market through a bond issuance. This move signals Champion Breweries’ intention to diversify its funding sources beyond traditional bank loans, strengthen its capital structure and position itself for sustainable growth amid rising input costs and intense competition in the beverage market.
The bond issuance was facilitated by Rand Merchant Bank (RMB), which acted as the lead issuing house and bookrunner for the transaction. Analysts familiar with the deal said RMB played a key role in structuring the bond, advising on credit ratings, coordinating regulatory engagements and managing investor relations to ensure a smooth and successful execution.
Speaking on the development, the Chairman of Champion Breweries Plc, Mr Imo-Abasi Jacob, described the bond issuance as more than just a financing transaction. According to him, the successful outing in the debt capital market reflects the strength of the company’s governance framework and the resilience of its business model. He said the response from investors shows strong confidence in Champion Breweries’ long-term vision and strategic direction.
“This successful bond issuance is more than a financing milestone; it is a statement of intent,” Jacob said. “By accessing the debt capital markets, we have demonstrated the strength of our governance, the resilience of our business model, and the confidence investors place in our long-term vision.”
The Chief Executive Officer of Champion Breweries Plc, Mr Inalegwu Adoga, also welcomed the outcome of the exercise, noting that it aligns with the company’s broader transformation agenda under EnjoyCorp, its core investor. He said the fresh capital will enable the company to unlock new opportunities, improve efficiency and reinforce its position in Nigeria’s beverage industry.
“This successful bond issuance reflects investor confidence in Champion Breweries and our strategic direction under EnjoyCorp,” Adoga said. “With this capital, we are focused on driving operational efficiency and unlocking opportunities that will sustain growth and reinforce our leadership in Nigeria’s beverage market.”
From the financial advisory side, an Executive Director at Rand Merchant Bank Nigeria Limited and Head of Investment Banking for Broader Africa, Mr Chidi Iwuchukwu, said the transaction represents a significant milestone not only for Champion Breweries but also for Nigeria’s debt capital market. He noted that the deal highlights the increasing depth and sophistication of the local bond market, especially for corporate issuers outside the financial services sector.
Iwuchukwu said RMB was proud to partner with Champion Breweries on its maiden bond issuance, adding that the bank leveraged its expertise in transaction structuring, debt advisory, credit ratings advisory, and investor and regulatory engagement to deliver a seamless process. He added that the success of the deal sets a new benchmark for the breweries sub-sector in Nigeria.
The Chief Executive Officer of RMB Nigeria, Mr Bayo Ajayi, also expressed satisfaction with the outcome of the transaction. He said the bond issuance demonstrates that Nigerian companies can access long-term funding from the capital market to support growth and expansion. According to him, the deal reflects the growing confidence of investors in well-structured corporate instruments and the ongoing development of Nigeria’s capital markets.
“We are proud to have led and advised Champion Breweries through the process of accessing long-term funding from the debt capital markets,” Ajayi said. “This transaction demonstrates the depth and sophistication of Nigeria’s debt capital markets. At RMB Nigeria, we remain committed to structuring solutions that meet our clients’ funding needs while contributing to the development of Nigeria’s capital markets.”
Market analysts believe that Champion Breweries’ successful bond issuance could encourage other manufacturing and consumer goods companies to explore the debt capital market as an alternative funding source. With rising interest rates and tighter credit conditions, experts say well-governed companies with clear growth strategies may increasingly turn to bonds to fund expansion and improve balance sheet stability.
As Champion Breweries continues to expand its footprint in Nigeria’s beverage industry, stakeholders will be watching closely to see how effectively the company deploys the funds to drive efficiency, boost output and enhance shareholder value in the coming years.
