4th August, 2010
Plans by the International Finance Corporation to invest $170 million in FCMB Plc has been approved by the shareholders of the bank during the bankâ€™s Annual General Meeting (AGM) in Lagos.
The fund, according to the Managing Director of the bank, Mr. Ladi Balogun, will be in form of equity and loan.
He explained that it was a good deal for the bank, adding that the new investors would not have any representative on the board of the bank.
He explained further that $60 million would be invested in form of equity, while the remaining $110 million would be in form of loan, which would be granted at about four percent interest rate above the Nigerian inter bank offered rate.
The approval was given through a resolution proposed by the bankâ€™s board of directors to shareholders, which said, â€œsubject to the regulatory authorities, the company be and is hereby authorized to accept from leading development financial institutions and/or offshore correspondence banks or lenders from time to time, to an investment in equity and/or convertible debt, upon terms to be agreed, resulting in the increased issued share capital of not more than 575 million shares on such terms and conditions, as may be approved by the directors.â€
The financial year of the company was also charged from April 30 to December 31, by shareholders, in line with the directives of the Central Bank of Nigeria.
Before the approval of the resolution,Â the President of Nigerian Shareholders Solidarity Association, Chief Timothy Adesiyan, urged the board to ensure that it gave bonuses to existing shareholders before accepting the new investors, so that their holdings would not be unnecessarily diluted.