CITITRUST Holding Plc said it is targeting an injection of N12.5 billion in debt capital to expand its business before the end of the first quarter of 2021.
In a statement issued by the company on Thursday, it also announced its decision to complete the recapitalization of the Living Trust mortgage bank from regional to national by the end of the first quarter of 2021.
The company said it is in line with its plan to achieve industry leadership in Nigeria and other regions in which it operates.
According to the company, the debt will be raised through subsidiaries.
Presenting CITITRUST’s Investment Roadmap and Strategy for 2021-2023. At a webinar organized by the company, its chief financial officer and strategy, Afolabi Martins, noted that the development would provide additional capital to recapitalize expansion across Africa.
He said the debt will have a 36-month term and is amortized in nine equal quarterly installments, starting with the first anniversary of the debt.
Martins also revealed that plans are underway to put CFS Nigeria on the list of the Nigerian Stock Exchange in 2021.
The CEO said, “Based on the impressive growth of our loan book, we are ready that these additional funds will enable us to further diversify our earnings base in all subsidiaries.
“The three-year plan describes in detail our operational advances in finance, investment and strategy, as well as international operations to achieve strong growth through the adoption of a strategic investment plan and aggressive market penetration.
“For our medium goals, much of the financial impact comes from our focus on hiring a small equity base to create more capital and investment through accountability, which we believe is largely under our control.
“Our ability to achieve a return of middle-aged teenagers or greater over a horizon of three years or more will come as an investment in our business.”
He said the dividend policy would also be reviewed for approval, adding that all CITITRUST subsidiaries should strive to maintain a dividend payout ratio of 40 percent.
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