First City Monument Bank has converted a ₦23.11 billion mandatory loan, including interest, into equity, boosting its capital structure.
The move added 3.16 billion shares to the Nigerian Exchange, raising its issued shares from 39.6 billion to 42.77 billion.
According to NGX Regulation, the shares were listed at 50 kobo each, raising FCMB’s market capitalization by ₦33.09 billion to ₦446.96 billion, based on a trading price of ₦10.45 per share.
The conversion, executed at ₦7.30 per share, forms part of FCMB’s recapitalization plan to meet the Central Bank of Nigeria’s capital adequacy requirements. The step reduces debt, improves liquidity, and reinforces investor confidence.
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In June, the bank disclosed plans to leave the CBN’s regulatory forbearance list before the March 2026 recapitalization deadline.
The loan conversion was described as critical to compliance with single obligor lending limits.
The lender has also cut forbearance window loans from ₦538.8 billion in September 2024 to ₦207.6 billion by May 2025, a reduction of over 60%. While this temporarily increased its non-performing loan ratio, the bank projects it will fall below 10% by year-end.
Combined with retained earnings, the measures are expected to keep FCMB’s capital adequacy ratio above the 15% threshold for international banks.
Investor sentiment has remained positive. Following the conversion and listing, FCMB’s share price rose from ₦10.45 on September 23 to ₦10.90 by September 26, gaining 1.87% within the week. Year-to-date, the stock is up 14%.
Analysts consider the development a milestone in FCMB’s recapitalization journey, positioning it for sustained growth and stability.
