Crusader Nigeria Plc, a member of the financial services sector of the Nigerian Stock Exchange (NSE) with businesses across insurance, pensions, properties and hospitality industry is set to raise NGN2.3bn through rights issue. The offer, which opens January 9 and closes January 27, 2011, will be undertaken via zero coupon unsecured subordinated irredeemable convertible debenture stock on the basis of NGN50 debenture for every 100 ordinary shares of 50 kobo each held at the close of business on Tuesday July 19, 2011. The purpose of the offer, the company stated, would be used to restructure and strengthen the company’s capital base, provide it with operating capital, enhance its working capital, and upon conversion, reduce its financial gearing. The estimated net issue proceeds expected to be NGN2.171,948,087 after deducting cost of issue put at NGN88, 356,213 will be distributed as follows. Investment in subsidiaries will gulp 70 per cent of the net proceeds put at NGN1.52bn and remaining NGN651.6mn put into working capital. Capital Bancorp Limited is the issuing house to the offer. Crusader Group comprises five wholly owned subsidiaries, Crusader General Insurance Limited, Crusader Life Insurance Limited, Crusader Trustees Limited, Crusader Properties Limited and Crusader Hotels and Apartments Limited. The group through two of its subsidiaries holds in total 50 per cent of the issued and fully paid up-shares of Crusader Sterling Pensions Limited. Monsur Kenku, chairman of the company expressed optimism on the future of the offer stating that it would go a long way in positioning the company for future challenges. On the company’s financials, the group increased its gross premium in 2010 by 3.9 per cent to NGN5.23bn from NGN5.03bn achieved in 2009. While the life insurance business achieved a phenomenal increase of approximately 53 per cent, the general business recorded a reduction of nine per cent. On future outlook, the company is hopeful that it would key into the National Insurance Commission’s market deepening efforts, especially in the enforcement of compulsory insurance laws. “As a group, we are refocusing on our core values of delivering exceptional services to our clients such that commensurate price can accrue from our above average service delivery.”