FCMB Group Secures Shareholder Approval for Landmark N340 Billion Capital Raise
FCMB Group Plc has secured shareholder approval to raise up to ₦340 billion in capital, a significant increase from the previously authorized ₦150 billion.
This decision was made during an extraordinary general meeting held in Lagos, both physically and virtually.
The capital raise is essential for First City Monument Bank Limited, the Group’s banking subsidiary, to comply with the Central Bank of Nigeria’s (CBN) revised capital requirements for banks with international licenses.
The approved capital raise will be facilitated through various financial instruments, including ordinary and preference shares, convertible and non-convertible securities, bonds, and loans.
Additionally, shareholders have endorsed the divestment of stakes in one or more subsidiaries, with proceeds to be reinvested into the banking subsidiary. The acceptance of surplus funds from the oversubscription of the public offer launched in July 2024 was also approved, pending regulatory consent.
Furthermore, the meeting sanctioned an increase in the company’s issued share capital from ₦19.8 billion, divided into 39.6 billion ordinary shares of 50 kobo each, and authorized the raising of up to $15 million (or its Naira equivalent) via a mandatory convertible loan targeted at select qualified investors.
Group Chief Executive Officer of FCMB Group, Ladi Balogun, described this development as a critical milestone, highlighting shareholder confidence in the Group’s strategic direction.
He noted that an earlier capital raise in September was oversubscribed, reflecting robust investor confidence in the company’s growth prospects.
This capital augmentation aligns with the CBN’s directive issued on March 28, 2024, which mandated an upward revision of minimum capital requirements for banks in Nigeria, to be achieved by March 31, 2026.
FCMB Group’s proactive approach in securing this approval demonstrates its commitment to meeting regulatory standards and strengthening its financial position in the banking sector.