Future Energy Source Company (FESCO), secured debt financing for One Billion Dollars, the company informed the Jamaica Stock Exchange to be used for general corporate purposes that support FESCO’s growth objectives.
The facility is a five years corporate bond to be listed on the Private Market of the Jamaica Stock Exchange, with NCB Capital Markets acting as Arranger. The proceeds will be utilized including working capital, operating expenses and capital expenditure related to the expansion of its dealership network and service station footprint and funding the entry into the consumer cooking gas and LPG market.
Fesco recently traded at an all-time high of $8.49 but closed on Wednesday at $5.28 after listing in April 2021 at just 80 cents per share. The company reported revenues of $8 billion for the nine months to December last year, almost doubling the $4.45 billion in the corresponding 2020 period and generating a profit of $171 million versus $92 million before tax.
Included in the expansion plans is the equipping large industrial corporate customers with digitally equipped tanks that will dispense fuel based on individual cards for each driver that will easily track usage for each vehicle as well as the acquisition of cooking gas cylinders in preparation for starting delivery of that service. According to CEO Jeremy Barnes, the plan is to have 22 branded stations within three years.
The company currently has 16 Fesco branded service stations in operation, with the newest one on Beechwood Avenue in Kingston the only one owned and operated by them.
Fesco raised $1 billion for expansion
March 10, 2022 by
