FBNQuest Advocates Equity Capital Financing Options For Business Growth, Expansion

FBNQuest has advised  private mid-cap companies to carefully explore the capital financing options available in the local financial markets to grow their businesses.

FBNQuesr is the investment banking and asset management business of FBN Holdings Plc.

Speaking at a media parley organised by FBNQuest in Ikoyi, Lagos  at the weekend, the managing director, FBNQuest Funds, Ijeoma Agboti, said, equity and quasi-equity capital are important sources of financing for mid-cap companies seeking investment for their current operations and expansion initiatives.

Stressing that equity capital can be helpful to businesses because business owners can sell shares to investors to finance expansion and growth, without immediate obligation, she added that, Quasi-equity encompasses various loan and convertible loan options for which repayment is linked to future cash flows, but often provide more flexible payment terms than traditional loans.

The current economic headwinds facing mid-cap businesses, she pointed out, places a demand on business leaders to carefully plan their capital needs with a view to optimise and defensive positioning.

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Agboti said, while the outlook for the business environment remains uncertain over the next 6 months, strong opportunities remain to bolster capital structures and to pursue strategic business prospects.

“A difficult economic environment provides a good opportunity to re-strategize and position for recovery. In the process, investors should decipher attractive opportunities presented by quality issuers,” she pointed out.

Similarly, the head of the Equity Research team of FBNQuest, Tunde Abidoye,  while speaking on the prospects for Nigeria’s macroeconomy, highlighted the outlook for public debt, the exchange rate and inflation.