C&I Leasing Plc has announced that its N7 billion bond issuance was oversubscribed by 33%.
Chukwuma Okolo, Chairman C&I Leasing Plc, disclosed this at the signing ceremony with issuance houses in Lagos.
Okolo noted that the firm was excited about the success of the first in the series of its N20 billion debt issuance programme.
In his words:
“We had an extremely successful outing, we had 133 percent subscription to our required N7 billion. But of course, as a disciplined company, we are accepting what we set out to raise.”
Also speaking, Andrew Otike-Odibi, Managing Director of the company, said a significant portion of proceeds from this series will be used to finance maturing bank loans and scale up its services in the oil and gas sector.
Recall that the company also raised N700 million at about 16 percent in 2016.
The rush for corporate bonds
Nigeria’s securities regulator may be preparing for record bond issuance from companies seeking to leverage on the lower interest rates and improved economic indices.
Improved liquidity on the Nigerian Stock Exchange (NSE) and FMDQ OTC Securities Exchange is also encouraging firms to sell more debt securities
In its Full year 2017 financial statements for the year ended 31 December 2017, the company recorded revenue growth of 26% Y-O-Y to N21.4 Billion from N17.0 Billion And 19% Increase in Profit After Tax to N1.1 Billion.
About C&I Leasing
C&I Leasing group of companies is made up of three divisions, Fleet Management, Outsourcing, and Marine divisions and two subsidiaries in Leasafric, Ghana and EPIC International FZE, United Arab Emirates.
In 1997, C&I Leasing Plc concluded a major restructuring that saw its conversion to a public company with its share listed on the official list of the NSE as the only leasing, support, and logistics rentals services company.
Its shares are currently trading at N1.61 with a one year return of 136.76%.