Cititrust Holding Plc has said it is targeting a debt capital injection of N12.5bn for business expansion before the end of the first quarter of 2021.
In a statement issued by the company on Thursday, it also disclosed its decision to complete the recapitalisation of Living Trust Mortgage Bank from a regional mortgage bank to a national one before the end of the first quarter of 2021.
The firm stated that this was in line with its plan to pursue industry leadership in Nigeria and other regions where it operates.
According to the company, the debt facility will be raised via the subsidiaries.
While presenting Cititrust Investment and Strategy Road Map for 2021-2023 at a webinar session organised by the company, its Executive Director, Finance and Strategy, Afolabi Martins, noted that the development would provide further capital to re-capitalise expansion across Africa.
He said the debt would have a tenor of 36 months and amortizes in nine equal quarterly instalments, beginning on the first anniversary of the debt.
Martins equally disclosed that plans were underway to list CFS Nigeria on the floor of the Nigerian Stock Exchange in 2021.
The executive director said, “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 three-year plan details our operational shifts as it relates to finance, investment and strategy and international operations 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 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 a dividend policy would also be reviewed for approval, adding that all Cititrust subsidiaries should endeavour to maintain a dividend pay-out ratio of 40 per cent.
