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Friday, December 25, 2020 / 2:39 PM / CITITRUST Holdings /Header Image Credit: CITITRUST Holdings
CITITRUST Holdings Plc said it is targeting a debt
capital injection of N12.5 billion for business expansion before the end of Q1
2021.
The company also disclosed its decision to complete
the recapitalization of Living Trust Mortgage Bank From a Regional Mortgage
Bank to a National Mortgage Bank before the end of Q1 of 2021.
This is in line with its plan to pursue industry
leadership in Nigeria and other regions where it operates.
According to the company, the debt facility would be
raised via the subsidiaries.
While presenting CITITRUST's Investment and Strategy
road Map for 2021-2023, at a webinar session organized by the company, its
Executive Director, Finance and Strategy, Afolabi Martins noted that the
development would provide further funds to re-capitalize expansion across
Africa.
He said, the debt will have a tenor of thirty-six
months and amortizes in nine equal quarterly installments, beginning on the
first anniversary of the debt.
Martins equally disclosed that plans are underway to
list CFS Nigeria on the floor of the Nigerian Stock Exchange (NSE) in 2021.
"Based on the impressive growth in our loan book, we are poised that these additional funds will enable us to further diversify the earnings base across all subsidiaries.
"The 3-year plan details our operational shifts as it
relates to Finance, Investment & Strategy, and International Operation to
deliver robust growth by adopting a strategic investment plan and aggressive
market penetration.
"For our medium targets, much of the financial impact
comes from our focus on employing a small equity base to create larger capital
and investments through liability generation, which we believe are largely in
our control. Our ability to achieve mid-teen returns or higher over a horizon
of three years or more will come as investments in our businesses," he said.
Speaking further, he said "a dividend policy will also
be reviewed by us for approval – all CITITRUST subsidiaries shall endeavour to
maintain a dividend payout ratio of 40per cent. Audit reports are to be
conducted on an interim basis and not a yearly basis as a dividend will be paid
bi-annually.
Giving details of the 2012-2023 Investment and
Strategy road Map, Martins noted that the company is looking at divesting its
stake in one of its subsidiaries in Nigeria.
He noted that indeed, the year 2020 has proven to be a
year of stabilization for their businesses on all fronts, adding that the
return to high performance was within the context of a challenging global and
local operating environment, which makes recovery even more remarkable "and our
pan-African businesses increasingly becoming more justified, giving the
region's growing contribution to the Group's performance, due to Africa's
rising profile in the global economy.
He said, "We have been able to thrive amidst the
decreasing economic growth rate, and achieved financial results and
performance, indicative of a resilient portfolio, diversified revenue streams,
and ultimately reflects our group as a sustainable and a future assured
Investment Group, even at the aftermath of the most challenging economic
situation faced in our recent history, the pandemic.
CITITRUST Holdings Plc's balance sheet size as of
September 2020 stood at N44 billion with 358 employees and over 1,000 indirect
employees.
As of date the company has carried out 12 successful
acquisitions across Nigeria, Ghana, Benin Republic & Rwanda, while the
total invested amount of CITITRUST Holdings Plc in its subsidiaries –
capitalization stood at N11.4 billion.
Total risk assets generated as of September 2020 via
lending activities and financing was N9.9 billion. Total funds under management
& customer deposit as of September 2020 also stood at ₦24.13 billion and over
33,000 active customers base, offering tailored services and solutions to
individuals and companies.
As an Investment Holding company, CITITRUST
Holdings Plc has an interest in the long-term drivers of shareholder value and
recognize that Environmental, Social and Corporate Governance (ESG) factors not
directly captured in financial statements can materially impact the
shareholder's value.
In 2020, CITITRUST Nigeria operations successfully
acquired the following companies; Living Trust Mortgage Bank Plc, Core Capital
Limited; Atlass Portfolios Limited; Core Trust & Investment Limited,
Great Hope Insurance Brokers Limited.
In Ghana, Credit Nest Microfinance Bank Limited was
acquired; Fund Management and Pension Licenses in Ghana were renewed, despite
the tough Ghana Financial Services Market terrain.
In South Africa, CITITRUST Financial Services (PTY)
Limited was issued an NCR (National Credit Provider) License to operate
nationally.
CITITRUST Capital Management (PTY) Limited,
South Africa was authorized as a Financial Services Provider.
CFS Group Plc, Nigeria, a subsidiary, launched a
wholly-owned Asset Management Company subsidiary, CITITRUST Asset Management
following the receipt of approval from the Securities and Exchange Commission
(SEC).
Also, Registrar of Financial Institution, Malawi
approved the grant of a license to South Atlantic Asset Management, Malawi (a
subsidiary) to operate as a portfolio manager. The portfolio Manager will
target Malawian and African clients in the diaspora.
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