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CBL declares first-half dividend of 3c

NZ NewswireNZ Newswire 6/10/2016 Paul McBeth

CBL Corp, which raised $60 million to help fund its international ambitions, has declared an interim dividend of 3 cents per share.

The Auckland-based credit surety and financial risk insurer will pay the dividend on Oct. 31 to shareholders on the register on Oct. 28, it said in a statement.

CBL posted a first-half profit of $18.6m, or 8.49 cents, in August, though its register has since expanded with the share sale to institutional investors who are entitled to the dividend.

The new capital will reduce CBL's pro forma debt to $102m from $162 million, which the insurer says will give it enough room to pursue new opportunities.

Those include accelerating existing business lines into new markets, such as selling surety bonds into Spain and Italy, and chasing new acquisitions, with the company in talks to buy a licensed shell insurance company in the US for US$6.3m.

CBL plans to raise up to a further $3m through a share purchase plan to eligible investors on the register on Sept. 28. The offer period runs between Oct. 5 and Oct. 25.

The shares fell 1.1 per cent to $3.66, having jumped 67 per cent this year making it the fourth-best performer on the S&P/NZX All Index.

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