Rating Release

C&I Leasing Plc’s 5-year ₦7 billion Series 1, 16.54% Fixed Rate Senior Secured Bond – Finance & Leasing Companies

The rating expires on 30 June 2021.

Agusto & Co. affirms the “A-” rating assigned to C&I Leasing Plc’s (‘the Issuer’ or ‘C& I Leasing’) 5-year ₦7 billion Series 1, 16.54% Fixed Rate Senior Secured Bond (‘the Issue’ or ‘the Bond’). C&I Leasing Plc is one of the largest leasing companies and personnel and logistics support providers in Nigeria. The Issuer provides fleet management, offshore marine support, personnel outsourcing and vehicle tracking services.

The Bond is secured by 10 marine vessels (“the Security”) owned by the Issuer and valued at ₦9.7 billion on the open market by Ubosi Eleh & Co. in December 2017 with a forced sale value of ₦7.3 billion. The Bond’s interest is payable semi-annually and the principal on the Issue is also repaid semi-annually on an amortized basis from a sinking fund account. The Bond’s rating is supported by the Issuer’s rating as well as our expectation of substantial recoveries under a forced sale of the ten marine vessels. We have also attached a stable outlook to the rating to reflect our expectations that the Issuer will remain resilient to the downturn in the economy accentuated by the pandemic.