CITITRUST Holdings mulls N12.5bn capital injection by Q1 2021
CITITRUST Holdings Plc said it is targeting a debt capital injection of N12.5 billion for business expansion before the end of Q1 2021.
The company also disclosed its decision to complete the recapitalization of Living Trust Mortgage Bank From a Regional Mortgage Bank to a National Mortgage Bank before the end of Q1 of 2021.
This is in line with its plan to pursue industry leadership in Nigeria and other regions where it operates.
According to the company, the debt facility would be raised via the subsidiaries.
While presenting CITITRUST’s Investment and Strategy road Map for 2021-2023, at a webinar session organized by the company, its Executive Director, Finance and Strategy, Afolabi Martins noted that the development would provide further funds to re-capitalize expansion across Africa.
He said, the debt will have a tenor of thirty-six months and amortizes in nine equal quarterly installments, beginning on the first anniversary of the debt.
Martins equally disclosed that plans are underway to list CFS Nigeria on the floor of the Nigerian Stock Exchange (NSE) in 2021.
“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 3-year plan details our operational shifts as it relates to Finance, Investment & Strategy, and International Operation 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 a 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.
Speaking further, he said “a dividend policy will also be reviewed by us for approval by all CITITRUST subsidiaries shall endeavour to maintain a dividend payout ratio of 40per cent. Audit reports are to be conducted on an interim basis and not a yearly basis as a dividend will be paid bi-annually.
Giving details of the 2012-2023 Investment and Strategy road Map, Martins noted that the company is looking at divesting its stake in one of its subsidiaries in Nigeria.
He noted that indeed, the year 2020 has proven to be a year of stabilization for their businesses on all fronts, adding that the return to high performance was within the context of a challenging global and local operating environment, which makes recovery even more remarkable “and our pan-African businesses increasingly becoming more justified, giving the region’s growing contribution to the Group’s performance, due to Africa’s rising profile in the global economy.
He said, “We have been able to thrive amidst the decreasing economic growth rate, and achieved financial results and performance, indicative of a resilient portfolio, diversified revenue streams, and ultimately reflects our group as a sustainable and a future assured Investment Group, even at the aftermath of the most challenging economic situation faced in our recent history, the pandemic.
CITITRUST Holdings Plc’s balance sheet size as of September 2020 stood at N44 billion with 358 employees and over 1,000 indirect employees.
As of date the company has carried out 12 successful acquisitions across Nigeria, Ghana, Benin Republic & Rwanda, while the total invested amount of CITITRUST Holdings Plc in its subsidiaries â€“ capitalization stood at N11.4 billion.
Total risk assets generated as of September 2020 via lending activities and financing was N9.9 billion. Total funds under management & customer deposit as of September 2020 also stood at â‚¦24.13 billion and over 33,000 active customers base, offering tailored services and solutions to individuals and companies.
As an Investment Holding company, CITITRUST Holdings Plc has an interest in the long-term drivers of shareholder value and recognize that Environmental, Social and Corporate Governance (ESG) factors not directly captured in financial statements can materially impact the shareholder’s value.
In 2020, CITITRUST Nigeria operations successfully acquired the following companies; Living Trust Mortgage Bank Plc, Core Capital Limited; Atlass Portfolios Limited; Core Trust & Investment Limited, Great Hope Insurance Brokers Limited.
In Ghana, Credit Nest Microfinance Bank Limited was acquired; Fund Management and Pension Licenses in Ghana were renewed, despite the tough Ghana Financial Services Market terrain.
In South Africa, CITITRUST Financial Services (PTY) Limited was issued an NCR (National Credit Provider) License to operate nationally.
CITITRUST Capital Management (PTY) Limited, South Africa was authorized as a Financial Services Provider.
CFS Group Plc, Nigeria, a subsidiary, launched a wholly-owned Asset Management Company subsidiary, CITITRUST Asset Management following the receipt of approval from the Securities and Exchange Commission (SEC).
Also, Registrar of Financial Institution, Malawi approved the grant of a license to South Atlantic Asset Management, Malawi (a subsidiary) to operate as a portfolio manager. The portfolio Manager will target Malawian and African clients in the diaspora.