C & I Leasing Plc is to raise additional capital of between N10 billion and N13 billion to boost its operations. The company had early this year raised about N2.26 billion equity from existing shareholders via rights issue.
However, speaking at the C & I Leasing first half 2020 investor webinar, Group Managing Director/CEO of the company, Mr. Andrew Otike-Odibi, said the immediate plan is to raise capital via bond issue. According to him, the company has seen the positive effect of capital injection on its operations.
“Gross earnings over the years have seen a steady growth with a compound annual growth rate (CAGR) of 17.6 per cent from 2016 – 2019. Despite the pandemic effect in 2020, the H1 2020 is at N15.3 billion and as the economy opens, we hope to finish on a strong position by year end. Total assets have also experienced growth over the last few years with a CAGR of 10.3 per cent from 2016 – 2019. We can see that the gross earnings and total assets CAGR have grown more than the CAGR of 9.6 per cent from 2016 – 2019 for total liabilities. With this we can clearly see the positive effect capital injection has on the company,” he said.
Otike-Odibi said going forward, the company will improve on cost optimisation initiatives complemented by new supply chain initiative.
He added that the company will achieve operating expense growth rate below inflation rate, seek opportunities for growth to improve visibility to customers and potential business partners.
“C & I Leasing will digitise operations and commercialise some operations, develop human capital in line with the opportunity that came out from the lockdown (working remotely), expand profitable partnerships and joint ventures and create new businesses from the array of opportunities that came out from the pandemic,” he said.
According to him, the board has laid down a solid foundation for growth, expansion and diversification, which is already yielding results, noting that the company remains consistent in improving its overall well-being of the company with initiatives that makes it leaders within its market space.
Meanwhile, the company has said Neoma Africa Fund (formerly Aureos Africa Fund), intends to commence discussions with potential buyers of its $10 million secured variable coupon redeemable convertible loan stock registered units of N4.75 or United States dollar equivalent units it holds in the company.