By PETER EGWUATU
FBN Capital Limited, the investment banking and asset management subsidiary of FBN Holdings Plc, has advocated equity fund raising for the indigenous oil and gas companies.
The company at its maiden Oil and Gas Roundtable noted that this is necessary, if the indigenous oil and gas firms must perform well and compete effectively giving the capital intensive nature of the industry.
The event which had as its theme ‘Raising Equity/Mezzanine Capital For Oil and Gas Companies’, brought together industry players, bankers, consultants, lawyers and other key stakeholders to discuss from different professional and experienced perspectives what it takes for emerging indigenous upstream independent oil & gas companies to raise equity and mezzanine capital for asset acquisition and development.
Speaking at the event, Managing Director of FBN Capital, Mr. Kayode Akinkugbe, said, “We consider ourselves to be innovators in the financing space and if we are able to assist indigenous entities in better understanding what it takes to arrange finance from an early stage, we believe we would have added true value. We have focused on equity/mezzanine capital for the oil and gas industry because we believe there is a huge need for this type of capital.”
In his presentation, Tarica Mpinga of Cannacord Genuity highlighted the stages of financing for oil and gas companies. He stated, “Nigeria will play a bigger role in oil and gas development for Africa”. He further highlighted the importance of players conservatively planning and mapping projections so that investors can make informed decisions based on information provided.
The event also featured a case study on the growth transition of Afren Plc, an indigenous oil and gas company. The roundtable speakers shared perspectives on how capital raising can be successfully achieved, and Dapo Okubadejo of KPMG commented on the steps that are taken into account from a consultant’s perspective.
Sanmi Famuyide, Head of Origination and Client Coverage for FBN Capital who moderated the session, explained FBN Capital’s role in making these opportunities real for indigenous companies.