The management of Vitafoam Nigeria Plc, on Thursday said it had secured the approval of the Bank of Industry (BoI) for N2bn long-term loan to augment its working capital.
The five-year facility at 12% interest and a one year moratorium on the principal, the company said in a statement to the Nigerian Stock Exchange (NSE), offers “significant savings on cost of funds in the current financial year from lower interest rate and flexible repayment terms; (in addition to an) increased margin and profitability from bulk procurement of major chemical raw materials directly from manufacturers at lower cost compared to procurement from third party suppliers.”
The statement also provided updates on its various subsidiaries including Vitaparts Nigeria Limited, a new strategic initiative to diversify the company’s operations and revenue base.
It is to manufacture oil filters and is expected to begin operation between April and June; while importation and installation of the manufacturing plant is expected to be concluded between January and March.
The statement signed by ‘Lekan Sanni, company secretary and legal adviser, added that Vitablom Nigeria Limited, another subsidiary engaged in the soft furnishing “has concluded installation of fibre processing plant,” is part of plans to also boost operation and revenue.