We’ll convert $10m loan in C&I Leasing to equity —Abraaj
The Abraaj Group has said it will convert its $10m loan to C & I Leasing Plc to equity.
According to a statement made available to the Nigerian Stock Exchange on Tuesday, the conversion is following the 2018 maturity of the $10m unsecured, coupon redeemable, convertible loan stock in C & I Leasing Plc.
The statement said Abraaj confirmed its intention to convert the loan stock to equity at a Board of Directors’ meeting of C & I Leasing in Lagos last month.
The Managing Director/Chief Executive Officer, C&I Leasing, Mr Andrew Otike-Odibi, said, “This development is positive for our business as it improves the capital structure of the company and helps position it favourably for additional capital raise from the market in the first quarter this year.”
According to the statement, in December, the company announced its intention to restructure its issued and paid-up share capital by consolidating every four ordinary shares currently held to one new share in the company.
“The purpose of the reconstruction was to allow the company to have enough unissued shares to accommodate the conversion of the Abraaj loan stock to ordinary shares and to raise additional capital through the capital market for business expansion,” it said.
The company added that existing and potential investors had very bright prospect following business opportunities it was planning to tap into to deliver regular returns in the years ahead.
It successfully raised a N7bn bond earlier in 2018 as part of a series of planned activities aimed at enhancing its overall competitive positioning.
“The funds have since been invested in expanding our marine business, purchase of new vehicles for the fleet management business and a restructure of some of its more expensive debts,” the statement read in part.
The company said as the leasing industry was expected to blossom even further owing to various government initiatives aimed at re-inflating the economy and the increasing relevance of leasing to capital formation, focus on agriculture would create an extensive market for the leasing business.
It added that it had been in operation for over two decades and had since evolved from being a simple finance leasing company licensed by the Central Bank of Nigeria in 1991 to becoming a diversified leasing and business service conglomerate.
According to the statement, C&I Leasing now provides support services to various indigenous and multinational organisations in West Africa along three lines — fleet management, personnel outsourcing and marine services.