The N1billion investment notes of the Crownrise Finance will is expected to open for public subscription on April 15, its Managing Director, Mr Babatunde Rufai-Lariba , has said.
According to Lariba, who stated this Thursday in Lagos at the stakeholders’ luncheon and Introduction of the corporate bond, the proceeds would be used for project financing, lease financing, loan syndication and loan granting
He explained that his belief in the importance of the finance house business as a critical requirement for supporting small and medium enterprises, which are the engine of economic growth, led to the establishment of Crownrise Finance in 1991.
He added: “It is the philosophy behind our products and services. It guides our relationship with industry peers and our contributions to the development of the industry through membership of Finance Houses Association of Nigeria (FHAN) and Equipment Leasing Association of Nigeria (ELAN).
“Today, we see huge opportunities in the Nigerian economy which require the critical services of finance houses for activation and realisation. As a firm believer in the mission and importance of the subsector, we have decided to rise to the occasion, by mobilising the required resources that will enable us support economic players committed to tapping the opportunities in the Nigerian economy for business growth, employment generation and prosperity for individuals and families.
“These informed our decision to approach the investment public and raise N1 billion through our bond offer, Through the Offer, we are in the quest to provide the much-needed financial support to the millions of individuals and businesses pushing to explore the huge opportunities offered by the nation’s economy”
The Director, Other Finance Institutions Supervision Department (OFISD) of the Central Bank of Nigeria (CBN), Mrs Tokunbo Martins, advised the company to judiciously “apply the proceeds of the bond to boost the SMEs subsector and the Nigerian economy in general, while at the same time meeting the needs and expectations of all.”
Also commenting on the issue, Dr Joshua Omokehinde of Tiddo Securities, the issuing house, explained that the bond is a six-year note. “At the middle of the 6th year, the company would like to pay off because there is a provision for call option since it is a private placement. We don’t want to do back door option. We have written the Securities and Exchange Commission (SEC).Even if it is a private placement, we are doing it to create public confidence in the bond. With all the things we put in place, it would go a long way to bring confidence and sanity to the Finance houses.”