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The shareholders of FCMB Group Plc have approved the N340bn that the banking group intends to raise as additional capital to meet the new capital requirement of the Central Bank of Nigeria for its banking subsidiary, First City Monument Bank Limited.
The approval was granted during a recent virtual extraordinary general meeting held in Lagos.
FCMB completed the first phase of its capital-raising programme in September, disclosing plans to raise N150bn between April and September 2024 as part of its recapitalisation efforts.
The approved measures include increasing the authorised additional capital raise from N150bn to N340bn, which empowers the Group to explore a diverse mix of financial instruments, such as ordinary and preference shares, convertible and non-convertible securities, bonds, and loans.
Shareholders also endorsed the divestment of stakes in one or more subsidiaries, with proceeds earmarked for reinvestment in the banking subsidiary, and the acceptance of surplus funds arising from the oversubscription of the public offer launched in July 2024, subject to regulatory approvals.
Additionally, the meeting approved an increase in the company’s issued share capital from N19.8bn to 39.6bn ordinary shares of 50k each while authorising the raise of up to $15m (or its naira equivalent) via a mandatory convertible loan targeted at select qualified investors.
Commenting on the approval, the Group Chief Executive, Ladi Balogun, said, “This is a critical milestone,” and noted that it highlighted the shareholders’ confidence in FCMB Group’s strategic direction.
In its nine-month report for the period ended September 30, 2024, FCMB Group reported a 67 per cent growth in profit before tax to N91.8bn. The PBT growth was distributed across the Group’s operating divisions with the Nigerian Banking operations accounting for 68 per cent of the total PBT, while 32 per cent came from other operating companies.
