Five quoted companies to raise N160bn fresh capital

By Kayode Ogunwale

 
Five notable companies listed on the Nigerian Stock Exchange (NSE) have approached regulators for approval of N160 billion fresh capital to boost their businesses.

Business Standard can confirm that, Flour Mills of Nigeria Plc has registered plans with regulators to raise up to N40 billion in equity over the next three years.

More so, Sterling Bank Plc, Wema Bank Plc and FCMB Plc are also planning to raise N35 billion, N20 billion and N15 billion fresh capital respectively.

As part of its efforts at broadening its operation base by expanding its branch network, Wema Bank has said it plans to issue N20 billion in bonds this month.

The bank is issuing local currency bonds after scrapping plans last year to issue a $100 million seven year dollar bond because of currency risks.

Wema Bank obtained shareholders’ approval in May to issue bonds or preference shares this year to raise N20 billion in the first tranche of a N50 billion programme, but market conditions then deteriorated.

In the same vein, FCMB is planing to raise N10 to N15 billion of tier II capital to boost its balance sheet and will target its retail investors for the offering.

In its own, Sterling Bank Plc is planing to raise additional N35 billion tier II capital by the second half of the year, even as the bank has recorded a reduction in non-performing loans from 4.8 per cent recorded in 2015 to 2.8 per cent by June 2016.

Also, Forte Oil Plc said it will raise N50 billion debt capital before the end of the year for operations expansion.

Speaking recently on the ‘Facts Behind the Figures’ presentation of the company, Group Chief Executive Officer of Forte Oil, Mr. Akin Akinfemiwa the company’s is speaking with regulators in the capital market for the approval of N50 billion debt capital before the end of 2016.

In clarity, Akinfemiwa stated that the company only concentrate on debt instrument saying, there is no intension to raise equity fund for now.

“We will be raising debt capital in 2016 and we are in discussion with NSE but for equity fund raising, it will not happen this year maybe in the future.”

He said Forte Oil want to raise long term debts and make its interest rate very predictive saying, “the first series of the fund will be between N10 and N15 billion.”