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Shareholders endorse FCMBââââââ


July 19, 2007/Punch



 Shareholders of First City Monument Bank Plc on Wednesday approved a proposal by the directors of the bank to raise additional funds from the capital market.


The fresh fund is to boost its competitive and leading position in the banking industry.



The directors had sought the permission of the shareholders to raise additional capital of up to N100bn or its United States dollar equivalent.


According to the resolution, the fresh capital can be raised through the issuance of debt and/or equity and/or any other instrument which may be appropriate to meet the bank’s capital requirements.



Consequently, the shareholders endorsed the planned fundraising at the bank’s extra-ordinary general meeting in Lagos.


Some of the shareholders, who gave their support to additional fund included, Mr. Sunny Nwosu, Dr. Faruk Umar, Mr. Boniface Okezie, Alhaji Gbedebo Olatokunbo, Mr. Gbenga Idowu, Raymond Anyiwo and Alhaji Muktar Muktar among other shareholders who spoke at the meeting.



However, they urged the directors to make the offer affordable for the existing shareholders, who are eager to participate actively.



The chairman of the bank, Mr. Jonathan Long, told the shareholders that the money would be used for the purposes of enhancing the bank’s working capital and financing business development initiatives.



Giving details, the Managing Director/Chief Executive of the bank, Mr. Ladi Balogun, explained that the fund would raise the bank’s capital base beyond the $1bn that has become a standard in the industry.



According to him, about 90 per cent of the fund would be used to finance asset that would yield returns during the bank’s 2007/2008 financial year.



“Specifically, we are going to invest in our capital market businesses, which is symbolised in FCMB Capital Markets Limited. About N25bn will go into this aspect of the business to make it more robust and to be able to deliver higher returns to shareholders,” he said.



He added that FCMB would use part of the money to acquire CSL Stockbrokers Limited which is an affiliate and make it a wholly owned subsidiary of the bank.



Balogun said that about N10bn would be used for capacity building, while N5bn would be devoted to consumer banking activities. He assured the shareholders that the pricing and timing of the offer would be done in a way that would be beneficial to all stakeholders.


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