C&I Leasing’s N7bn bond ‘oversubscribed by 133%’

C&I Leasing Plc, a finance leasing company, says its N7 billion bond issuance was oversubscribed by 133 percent, amid plans for expansion across its various business segments.

The firm made this known at a signing ceremony with issuing houses, trustees and other partners, which held in Lagos on Monday.

The offering, a five-year fixed rate senior secured bond, officially opened for issue on May 21 and closed on June 4.

Speaking at the ceremony, Chukwuma Okolo, chairman of C&I Leasing Plc, said the firm was excited about the success of the first in the series of its N20 billion debt issuance programme.

“As you all know, this N7 billion bond issue is the first tranche of several transactions we are launching,” he said.

“We had an extremely successful outing… we had 133 percent subscription to our required N7 billion. But of course as a disciplined company, we are accepting what we set out to raise.”

Andrew Otike-Odibi, managing director of the company, said a significant portion of proceeds from this series will be used to finance maturing bank loans and scale up its services in the oil and gas sector.

“Paying up some of our existing loans and growth of the business is the main thing we plan to use the N7 billion for,” he said.

“A combination of the activities of oil companies and the drive of the NCDMB (Nigerian Content Development and Monitoring Board), has helped promote our maritime business and that has been a main driver for us.

“Our outlook is very positive because if you notice, the oil price is slowly climbing up and that is creating new demand for assets in the oil and gas industry.”