FBN Capital has unfolded plans to raise fund from both international and local currency market to finance the recent privatized fi rms and its private equity business in 2014.
The fund raising is in anticipation of a successful privatization programme and readiness for the capital-intensive projects and transactions that would emerge from the various developmental initiatives of the Federal Government.
Speaking ahead of its forth-coming yearly investor conference in Lagos on Friday, the Managing Director of the company, Mr. Kayode Akinkugbe explained that the company will assist companies across the various sectors of the economy that would require capital to boost their businesses in order to facilitate economic growth.
Akinkugbe, who expressed the bank’s resolve to focus on closing existing mandates and building 2014 transaction pipeline, stressed that the company has been involved in a number of landmark investment banking transactions and divestment processes in the last few years.
According to him, the company would continue with the various initiatives to build distribution platform, as well as strengthen its fi nancing capabilities.
He said, “FBN Capital emerged as the fi rst fi nancial institution to have achieved loan signing in March 2013 for the Federal Government’s power sector privatization. In the last nine months we have assisted various clients in structuring and arranging over US$2.4 billion ($723m power sector + $1.7bn from other sectors) of debt fi nance.
“Notable transactions include $303m for Kepco Energy Resource Limited , $315m for NG Power – HPS Limited, $225m for Accugas Limited (Gas pipeline infrastructure), $1.2bn refi nancing and expansion debt for EMTS, $200m for a major rig services provider .”
He stressed that with the successful privatization of the PHCN successor companies, market activity has shifted to the NIPP privatization and the IOC divestments.
“Looking ahead, we expect ongoing activities in the oil and gas, power, financial services sectors, and the Asset Management Corporation of Nigeria divestment of the bridge banks to continue to drive market activity.
“Activity in the corporate trust segment is expected to continue to grow in tandem with debt financing in the oil and gas and power sectors, while activity in the public trust segment is also expected to rise as more states access the sub national bond market,” he added.