C&I Leasing eyes bond issuance in 2025

C&I Leasing, a leading Nigerian company, is gearing up to tap into the bond market in 2025 to accelerate its operations and enhance its business model. The company's Group Managing Director, Lenin Ugoji, highlighted the key drivers behind their growth strategy at the Facts Behind the Figures on the Nigerian Exchange. Ugoji pointed out three crucial factors propelling their success. Firstly, the firm has prioritized cost optimization by efficiently utilizing its existing assets, leveraging its long history of acquisitions. Amid economic challenges that limit new asset purchases, C&I has focused on maximizing the productivity of its current resources. Secondly, Ugoji emphasized the utilization of cross-charters in their marine business to engage other marine service companies and secure lucrative contracts, enabling them to generate profits from external assets. This strategic approach has proven profitable in recent years and is set to continue in 2024. Thirdly, the company has shown innovation in the fleet business by exploring alternative power sources for vehicles in anticipation of rising fuel costs post-subsidy removal in Nigeria. Despite the challenging operating environment and its impact on pricing dynamics, C&I Leasing is actively seeking ways to reduce operational costs and enhance efficiency. Ugoji noted that collaborations with strategic partners have yielded positive results in streamlining operations and improving overall performance. By outsourcing specific functions to more efficient partners, the company aims to navigate the current challenges and maintain a competitive edge. In terms of business segments, Ugoji highlighted the significant turnaround in the marine business, driven by operational efficiency and foreign exchange earning capacity. This has bolstered the segment's resilience and profitability in 2024. For the fleet management division, the focus has been on asset optimization and client engagement to maximize utilization and drive innovation. However, the outsourcing business has faced challenges due to shifts in the employment landscape, prompting C&I to pivot towards high-end personal outsourcing services, anticipating a growing demand in the future. With the appointment of Dr. Samuel Onyeshi as the new chairman and the impending bond issuance, C&I Leasing is strategically positioning itself for future growth. Dr. Onyeshi's significant investment in the company and debt-to-equity conversion have provided the firm with additional financial flexibility. The planned bond issuance, initially slated for 2024 but postponed due to interest rate considerations, is now on track for 2025. This move aims to bolster the company's capital base and support its expansion plans. In summary, C&I Leasing's proactive approach to cost optimization, strategic partnerships, and innovative business strategies underscores its commitment to sustainable growth and resilience in a challenging market environment. The upcoming bond issuance signals a promising future for the company as it continues to navigate the evolving landscape of the Nigerian business sector.