C & I Leasing to convert $10m loan from Neoma Africa Fund to ordinary shares

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By Kayode Tokede

C&I Leasing Plc, Nigeria’s foremost leasing and business support services company  has issued a notice to hold an Extraordinary General Meeting on Tuesday, 3rd November, 2020 to approve the conversion by Neoma Africa Fund, L.L.C its nominee, assignee or transferee of the $10million loan Stock issued by the company to 987,500,000 ordinary shares.

A notice at the Nigerian Stock Exchange said  Neoma Africa Fund LLC, formerly Aureos Africa Fund L.L.C. is a private equity fund being advised by Neoma Manager (Mauritius) Limited with current gross asset value of $78.4 million,

According to the company, Neoma Africa Fund, L.L.C. acting by itself, or through its nominee, assignee or transferee (as applicable) intends to convert its $10million unsecured variable coupon redeemable convertible loan stock in registered units of N4.75 or the US$   equivalent units into ordinary shares of the Company as contemplated under the loan stock agreement entered into on January 14, 2010 (as amended on August 31, 2016 and June 17, 2020) between the Company and Neoma Africa Fund L.L.C. and the placement memorandum issued by the Company on December 29, 2009.

That on 24th May 2017 the Company passed a resolution for the conversion either in whole or in part of the $10million convertible loan stocks issued to Abraaj Nigeria Advisers Limited.

The notice said the company shall not engage in any capital raising through the issuance of equity securities such as ordinary shares, preferred shares, bonds, loans, warrants, rights, options or other similar instruments or securities which are convertible into or exercisable or exchangeable for, or which carry a right to subscribe for or purchase ordinary or preferred shares of the Company or any instrument or certificate representing a beneficial ownership interest in the ordinary shares of the Company, including global depositary receipts and American depository receipts and any other security issued by the Company, even if not convertible into ordinary shares, that derives its value and/or return based on the financial performance of the Company or its shares whether through rights offerings, follow-on offerings or any other offering or transaction until the Conversion is affected.

C & I Leasing Plc had planned to raise N10 billion from the capital market through bond issuance for debt refinancing and to boost capital structure. It is not cleared how long the latest loan conversion deal will delay the planned capital raising exercise.