C & I Leasing issues N600 million bond on the OTC market

17 Aug 2016
Financial Nigeria


The bond has a coupon rate of 18.25 percent and tenor of 5 years.

L: Andrew Otike-Odibi, Managing Director, C & I Leasing, and Bola Onadele, Managing Director/CEO, FMDQ OTC Securities Exchange, at the listing ceremony held in Lagos.

C & I Leasing, the largest leasing company in Nigeria, has listed a N600 million bond on the FMDQ OTC Securities Exchange, an over-the-counter market operator for fixed income securities. According to a statement released on Tuesday, the bond has a coupon rate of 18.25 percent and tenor of 5 years.

The bond issue comes a week after UACN Property Development Company listed its N16.79 billion commercial paper on the FMDQ OTC platform.

“The current operating environment presents both opportunities and challenges,” said Andrew Otike-Odibi, the Managing Director of C & I Leasing. “And as a leading player in the support services industry, an offer of this nature will provide additional capital to enable us expand our marine business operations, repay existing credit facilities and meet working capital obligations which will ultimately lead to more profitability and growth in market share guided by a robust risk management framework and strong corporate governance.”

C & I Leasing offers finance leases and other ancillary services to companies and individuals. Established in 1990, C & I Leasing has operations in Nigeria and Ghana. In the first quarter of 2016, the company recorded revenue of N4.4 billion, an after-tax profit of N96 million and a balance sheet size of N27 billion.

Speaking during the C&I Leasing’s bond listing ceremony, Tumi Sekoni, FMDQ’s Divisional Head of Marketing and Business Development, said that FMDQ’s listing service allows issuers to access a deep pool of capital, thereby meeting long-term funding needs even as the Nigerian debt capital market becomes aligned with international best practices.

“To promote an efficient and well regulated market, which will attract and retain both domestic and foreign investors, improve price discovery and transparency for issuers, dealers, regulators and the general public, the [C&I Leasing] bond shall also be included on the FMDQ-Bloomberg E-Bond Trading System (E-Bond),” Sekoni said.

Founded in 2011, the total volume of transactions on FMDQ’s fixed income and currency markets reached N12.74 trillion in July this year.

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