On Monday, April 8, 2024, metal recycling company Romco announced a significant stride in its ongoing efforts to optimize its capital structure, propelling sustainable growth. The company has secured a Naira 1.1 billion drawdown for the approved Commercial Paper, marking the commencement of its first series.
This financial arrangement, deftly orchestrated by Quantum Zenith Capital & Investments Limited, underscores Romco’s steadfast commitment to cultivating robust institutional partnerships to execute strategic plans with precision.
The infusion of funds represents a pivotal milestone for Romco, as it charts a course towards strengthening its working capital base. With a strategic focus on enhancing procurement capabilities, these funds are poised to empower the company to fortify its operational foundation.
Moreover, Romco intends to utilize these resources to facilitate scaled repatriations of sale proceeds in United States Dollars back to Nigeria, further consolidating its financial position.
Raymond Onovwigun, Romco’s esteemed Chief Executive Officer, expressed his jubilation at this landmark achievement. He remarked, “We are thrilled to announce our entry into the Nigerian capital markets and the subsequent drawdown of our inaugural series from the approved commercial paper. This milestone underscores our dedication to constructing a sustainable future.”
Onovwigun further emphasized the strategic significance of Romco’s access to institutional capital, positioning the company as a frontrunner in Nigeria’s secondary materials production landscape. He reiterated Romco’s commitment to its overarching mission of revolutionizing metal production to address the pressing challenges of the climate crisis.
As of Q3/2022, Romco used compressed natural gas (CNG) to power its furnaces, producing 18,000 tons of aluminium ingots annually. However, the company plans to generate green hydrogen over the next few years to power its furnaces.
Intending to decarbonize the global metals supply chain, Romco aims to access $50 million in debt and equity to operate seven plants and produce 100,000 metric tons a year of secondary metal by 2025.