Nigeria’s biggest and oldest leasing firm, C&I Leasing Plc, says its N7bn bond issuance has been oversubscribed by 33 per cent.
The Chairman, C&I Leasing, Chukwuma Okolo, made this known at a signing ceremony with issuing houses, trustees and other partners.
The bond offer is a five-year fixed rate senior secured bond, which was officially opened for issue on May 21 and closed on June 4, 2018.
“We had an extremely successful outing…we had 133 per cent subscription to our required N7bn. But of course, as a disciplined company, we are accepting what we set out to raise,” Okolo said.
According to him, the company plans to use a significant part of the money raised from the series to finance maturing bank loans and scale up its services in the oil and gas sector.
It plans to use the funds raised to buy more vessels to lease to oil companies and expand its business in Ghana as Dubai-based private equity firm, Abraaj, exits.
“With this, the company’s debt ratio will be cut to 70 per cent from 80 per cent, and it will be able to redeem a $2.4m loan it got from Aureous Capital, now part of the Abraaj Group,” Okolo stated.
C&I Leasing supplies patrol boats and tugboats to Shell, Mobil, Chevron and the Nigerian National Petroleum Corporation’s operating unit, via long-term contracts. It has 23 vessels and competes with French rival, Bourbon Offshore.
The company is listed on the Lagos Stock Exchange and its core investors are also directors, owning 56 per cent of the shares, while the rest is free-float.
C&I Leasing bond oversubscribed by 33%