VFD Group Plc announced plans to raise N30bn in additional capital through share issuance, global depository receipts, commercial papers, loans, convertible and non-convertible instruments, medium-term notes, and bonds.

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At the company’s annual general meeting in Lagos, Company Secretary Gbeminiyi Shoda stated the capital raise aims to strengthen the company’s financial base and support its growth plans. The process will occur in tranches, with terms such as coupon rates and maturity periods determined by the directors, pending regulatory approval.

“The directors are authorised to raise up to N30bn through various instruments in tranches, series, or proportions, subject to relevant regulatory approvals,” Shoda said.

The board of directors is also authorised to engage professional parties and execute necessary documents to facilitate the fundraising efforts. The capital raise will position VFD Group to seize emerging opportunities and enhance its market competitiveness.

In addition, shareholders approved capitalising over N500m from the balance sheet to issue bonus shares to existing shareholders at a ratio of four new shares for every share held, thereby increasing the company’s share capital and rewarding loyal investors.

Chairman Olatunde Busari highlighted the company’s performance in 2023, attributing achievements to shareholder support and staff dedication. Despite global economic challenges like inflation and supply chain disruptions, VFD Group maintained stability through strategic restructuring.

CEO Nonso Okpala assured shareholders of the company’s commitment to growth and sustainability, promising to avoid past regulatory fines.