First City Monument Bank (FCMB) says it plans to raise an additional N340 billion through a capital raising programme that will be approved by its board of directors.
In a notice on Wednesday, FCMB said the funds may be raised through the issuance of ordinary shares or preference shares via private placement, rights issue or both.
FCMB had completed the first phase of its capital-raising programme in September, disclosing plans to raise N150 billion between April and September 2024 as part of its recapitalization efforts.
“That the authorised additional capital raise of the Company be and is hereby increased from up to N150,000,000,000.00 (One Hundred and Fifty Billion Naira) to up to N340,000,000,000.00 (Three Hundred and Forty Billion Naira) or its equivalent in such other currency as the Board of Directors of the Company (the “Board” or the “Directors”) may decide, through the issuance of securities comprising ordinary shares, preference shares, convertible or non-convertible notes and/or loans, notes, bonds or any other instruments, in the Nigerian and/or international capital markets, either as a standalone issue(s) or by the establishment of capital raising programme(s), whether by way of public offerings, private placements, rights issues and/or such other transaction modes, at such price(s), coupon or interest rates determined through book building or any other acceptable valuation method or combination of methods, in such tranches, series or proportions, within such maturity periods and at such dates and upon such terms and conditions, as may be determined by the Board, subject to obtaining the requisite approvals of the relevant regulatory authorities,” FCMB said.
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“That the Board also be and is hereby authorised to divest a portion of the Company’s stake in one or more of its subsidiaries as it may see fit, and as the Board deems fit, invest such portions of the proceeds of the divestments into First City Monument Bank Limited, as parts of steps to meet its capital raise objectives outlined in Resolution 1 above, at such price(s) as may be determined by such valuation methods acceptable to the Board, at such dates and upon such terms and conditions as may be determined by the Board, subject to obtaining the requisite approvals of the relevant regulatory authorities.”
On March 28, the CBN adjusted the capital base for commercial banks with international licences to N500 billion, while national and regional financial institutions’ capital bases were pegged at N200 billion and N50 billion, respectively.
Banks have since been making efforts to raise funds to meet the minimum capital requirements.
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