Forte Oil Set To Raise N100billion Fresh Capital to Boost Expansion Drive

Indigenous oil company, Forte Oil Plc, has unveiled plans to raise N100 billion fresh capital to expand its operations within Nigeria.

To this end, the directors of the company are seeking the approval of shareholders at the forthcoming annual general meeting to raise the funds.

According to the company, the N100 billion could be raise through a rights issue, bond or share offering, or global depository receipts.

The capital raising plan is coming less than a year after the company successfully attracted $200 million equity capital injection from Mercuria Energy to acquire 17 per cent in the company.

That equity capital contributed to the growth Forte Oil recorded in its profit for 2015 as it helped to reduce interest charges paid on bank borrowings.

Specifically, the directors are asking the shareholders to authorize them to “raise by way of a public offering, rights issue, any other methods they deem fit, additional equity and/or deb capital up to N100 billion through the issuance of shares, convertible securities or non-convertible securities, global depository receipts, medium term notes, loan notes, bonds and or any other instrument(s) whether as a standalone transaction or by way of a programme in such tranches, series or proportion, at such coupon or interest rates within such maturity periods at such dates and time and on such processes all of which shall be determined by the directors subject to all relevant regulatory approvals.”



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