Nigeria Forex Woes Forces Cadbury to Swap Dollar Loans to Equity – Bloomberg
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Americas+1 212 318 2000
EMEA+44 20 7330 7500
Asia Pacific+65 6212 1000
Cadbury Nigeria Plc plans to convert foreign-currency loans from parent Cadbury Schweppes Overseas Ltd. into equity to cut higher financing costs caused by the devaluation of the naira.
The beverage and confectionery company will seek shareholder approval on Feb. 8 to convert an outstanding $7.7 million, according to a filing to the Nigerian Stock Exchange. The debt-to-equity conversion “will help reduce the company’s exposure to foreign-exchange risk and its impact on earnings,” Cadbury said. “It will reduce finance costs and lead to improved profitability.”
