Abraaj plans to convert $10m loans in C&I Leasing to equity

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C &I Leasing has announced its plans by Abraaj Group, managers of the Aureos Africa Fund, to convert its $10 million loan stock to the company to equity.

The company noted that the $10 million was an unsecured, coupon redeemable, convertible loan stock that matured at the end of 2018.

Last year, C & I Leasing raised N7 billion bond as part of a series of planned activities which was targeted at improving  its overall competitive positioning.

However, these funds have been used in expanding its marine business, purchase of new vehicles for the fleet management business and a restructure of some of its more expensive debts.

Investment analysts have concluded that  the company is set to record improvement as it works towards expanding its operations.

Last year,the company’s shares also delivered positive capital appreciation in the stock market last year. C & I Leasing shares gained 37.9 per cent while the market suffered a decline of 17.8 per cent in 2018.

Analysts stressed that extensive focus on agriculture will create an wide market for the leasing business adding that a lot  equipment would be required across the agriculture value chain.