C & I Leasing lists N7bn fixed rate bond on FMDQ
Adesola Afolabi was a businessamlive reporter and Head of Financial desk.
C & I Leasing Plc., has listed its N7 billion series 1 fixed rate bond under its N20 billion bond issuance programme on the FMDQ OTC Exchange.
The listing, which is to raise funds for C&I Leasing’s expansion plans, follows approvals granted by the FMDQ Board Listings, Markets and Technology Committee.
Andrew Otike –Odibi, managing director/CEO, C & I Leasing Plc., during the issuer’s special address, in a ceremony held at the FMDQ last Friday stated, “the expansion plans for which we raised the bond are already successfully on course with our complete acquisition of C & I Petrotech taking full ownership of six boats in the process, as well as the recent acquisition of some new vessels to take advantage of the increasing opportunities in the marine business.”
Otike-Odibi explained that his company has invested in brand new vehicles to upgrade the travel experience for its car rental and fleet management clients.
“In addition to these, we are able to replace some expensive debts with the bond proceeds.
Overall, the funds have already been put to use and we guarantee subscribers value and returns in due course.”
During the ceremony’s welcome address, Bukola Oluyadi, divisional head, marketing communications, FMDQ, congratulated the issuer and sponsor of the issue on the success achieved in the DCM and expressed the OTC Exchange’s gratitude for the issuer’s decision to list the bond on FMDQ.
According to her, being listed on FMDQ will avail the bond a host of benefits including, unprecedented transparency, efficient price formation and improved global visibility, among others.
She further reiterated the OTC Exchange’s commitment to continually align its strategies and innovation to serve and provide the much-needed support to the players in the DCM.
Delivering the registration member (Listings) remarks, Tony Anonyai, executive director at Planet Capital Limited, highlighted the over-subscription of the offer is indicative of investors’ confidence in the C & I Leasing Bond.
“Indeed, Planet Capital is very delighted to lead the group of issuing houses in this capital raising exercise.
This listing creates liquidity for the instrument and improves the price discovery process for subsequent issues by the company.”
Tumi Sekoni, associate executive director, FMDQ, in her closing remarks, applauded the issuer, C & I Leasing, for achieving this milestone and commended the sponsor to the issue and Registration Member (Listings) of FMDQ, Planet Capital Limited, for its concerted efforts towards ensuring the success of the issuance.
She further reiterated that through consistent collaboration with its stakeholders, FMDQ will continue to deepen and effectively position the Nigerian DCM for growth, in support of the realisation of a globally competitive and vibrant economy.
Corporate institutions have continued to successfully tap into the Nigerian Debt Capital Markets (DCM) to access stable long-term finance to fund their key activities that ultimately translate to the development of the economy at large, some of which include, but are not limited to, funding pressing development needs and supporting capital investments.