Shareholders of C&I leasing have approve a stock loan facility of about N2.2 billion for the expansion and development of a strong diverse finance service base for the company.
Specifically, the loan facility is a N2.240 billion unsecured redeemable convertible loan stock to last between 2009-14 in registered units of N4.75 at par. Speaking at the company's extra ordinary meeting, the Managing Director, Mr. Emeka Ndu said that based on the confidence and results posted by the company, shareholders had cemented their support for the management by approving the loan.
He said that the group made capital investment amounting to N2.1 billion in the year ended January 2009, which were made to further enlarge the assets generating income potential across the group. Further, Chairman C&I leasing, Abdul Bello, said that the company growth in turnover was as a result of increased revenue from its outsourcing and car rental services, increased volume of finance lease transactions and the consolidation of C&I Motors Limited results.
He also stated that the company made substantial investment in systems upgrade and going forward would be looking to reap the benefits of those investments. To Ndu, "during the year, the company incorporated an additional subsidiary, Citrans Global Limited to operate a modern taxi service in Lagos under the Lagos State Government license.
One shareholder, Adio Alex, who is also the Chairman of Dynaminc Shareholders' Association of Nigeria, said that the decision to seek improved financing was a good one in the face of the current global economic meltdown. According to C&I, the proceeds of the loan would be used to finance the expansion of its existing businesses, product and distribution network, repayment of current borrowing and working capital.
According to the company, in recent years, that activity had been expanded to providing logistic support services, which it said made it a key player in the strategic oil and oil service industry where it provided leases and ancillary services to both local affiliates of international companies such as Cadbury, Heineken, Shell, Chevron, ExxonMobil, ENI-Agip, and MTN.
The company posted a turnover of N4.7 billion for 2009, an increase from N2.4 billion it recorded in 2008, and N6.8 billion for the group compared with N2.6 billion in 2008.