• FCMB converted ₦23.1 billion ($15.5 million) in convertible debt into over 3.16 billion shares.
• The move raises total shares outstanding to 42.8 billion, an 8% increase.
• Conversion strengthens capital base as CBN enforces higher minimum capital requirements.

Nigerian Exchange Limited (NGX) has approved the listing of more than 3.16 billion new shares in FCMB Group Plc after the financial services holding converted a $15.5 million convertible loan into equity.

The debt-for-equity swap, completed on September 23, involved the issuance of 3,166,284,712 ordinary shares at ₦7.30 each, with a nominal value of 50 kobos. Holders of the bonds are now shareholders of the group.

The transaction increases FCMB’s total issued shares to 42.77 billion, up from 39.61 billion previously. The 8% expansion strengthens the bank’s capital position while reducing leverage, aligning with the Central Bank of Nigeria’s (CBN) new capital rules requiring banks to raise fresh equity—₦500 billion for international banks, ₦200 billion for national lenders, and ₦50 billion for regional institutions.

By reinforcing its equity base and easing its debt load, FCMB Group said it gains greater flexibility to finance growth projects, support large corporates and SMEs, and expand into new African markets.

Debt-to-equity conversions are a common tool for companies seeking to deleverage while preserving liquidity. Creditors become shareholders, while the company eliminates repayment obligations, enhancing cash flow and balance sheet resilience.

This article was initially published in French by Sandrine Gaingne

Adapted in English by Ange Jason Quenum