Notore to raise new equity, bonds to strengthen growth-Records N9.9bn Income In 15 months
Written by Broad Admin on April 11, 2022
Notore Chemical Industries Plc plans to restructure its capital structure by raising additional equity capital in the fourth quarter of this year.
The net proceeds of the will be applied to deleverage its balance sheet to achieve an optimal mix of debt and equity and fund part of planned expansion activities to further reposition the company for growth.
The management of the company at the weekend indicated that it also plans to carry out a bond issuance programme in the second quarter of 2023 after completing the equity raising programme. The company has already commenced discussions with a credit rating agency and other financial advisors as part of the processes for the debt issuance.
The net proceeds of the bond issue will be used to further reduce and restructure its existing bank debt to reduce finance costs and free up cash flows to augment working capital.
The agro-allied and chemical company, also reported an operating income of N9.9 billion in its audited results for the 15 months ended 31st December 2021.
In a statement by its group managing director and chief executive officer (CEO), Mr Ohis Ohiwerei, the company said the period was for rebuilding and repositioning Notore to further deliver on its promise to Champion the African Green Revolution.
To him, “though a very challenging period for Notore, it completed the Turn-Around Maintenance (TAM) programme during the period. TAM was a critical step taken by the Company to address the drawbacks affecting the stability and reliability of its manufacturing plant, an essential measure to raise production output to meet and sustain its plant’s 500,000 MT per annum nameplate design capacity.
“The completion of TAM, which occurred during the period, has improved reliability and will translate to a significant upturn in the Company’s production output. This achievement will lead to increases in the Company’s cash flows from operations, strengthen its debt service capacity, and generate substantial increases in revenues in the future, an essential key to returning the company to profitability in the ongoing financial year.