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C & I Leasing’s N7b bond to drive expansion, debt refinancing

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• Records 133% over-subscription
C&I Leasing Plc has introduced that N7 billion Series I bond which opened on Monday May 21, 2018 recorded 133 per cent over subscription.

The Managing Director of the corporate, Andrew Otike -Odibi whereas addressing events to the bond on the signing ceremony held in Lagos on Tuesday defined that the N7 billion raised will largely increase its enterprise enlargement train and restructuring of the corporate’s money owed over a interval of 5 years.

As said by him, this may consequently relieve the present debt profile on the group’s stability sheet whereas growing revenue margins and returns for shareholders.

“We closed at 16.54 per cent and that’s going to journey off about three per cent of our borrowing value which you’re taking the portion of the bond suppose to be for refinance present debt that’s important financial savings speaking about between N20 and N25 million in a yr.

“It will positively affect our revenue margin by including one other N20 or N25 million to our bottom-line over a twelve-month interval. We have sustained our end result for 2017 and hopefully surpassed it and it will hopefully assist us within the efficiency of the enterprise in 2018 and past.

He continued: “The success of the bond is indicative of the market’s confidence in our enterprise, they’ve seen our construction, focus and consistency with corporate governance in 27 years of operations they usually can inform we now have a good story unfolding.

“There is a niche market for Nigerian businesses in the maritime sector to serve Oil and Gas companies, but it is not enough to be a Nigerian Company. Proper structure is also very critical, and this is one of our strengths at C & I Leasing Plc,” he additionally mentioned.

The Managing Director of Planet Capital- the Lead Issuing House; Efe Akhigbe identified that the supply was very profitable due to the observe document of the agency has demonstrated over 25 years of operations in Nigeria.

He also stated that the corporate’s funding in marine belongings, serving the oil and gasoline corporations in varied mid to long run contracts, which was enticing to buyers, as well as to the timing of the issuance was instrumental to the success of the bond which was largely patronized by high pension fund managers and insurance coverage corporations.

The bond, which is the primary sequence in a N20 billion debt issuance programme, is a Senior Secured Bond with a fastened charge of 16.54%. It was issued at a worth of N1,000 per unit with December 2023 as maturity date.

C&I Leasing Plc has advanced to grow to be a helpful useful resource and enterprise accomplice for a number of indigenous and multinational blue-chip organizations. The firm at present supplies assist providers alongside three traces; Fleet Management, Personnel Outsourcing and Marine Services.

The C&I Leasing group of corporations, which has its operational places of work in Lagos, Port Harcourt and Abuja, can be invested in subsidiaries – Leasafric Ghana and Epic International FZE.

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