IEI Strengthens Balance Sheet: ₦2bn Deposit Converted to Equity, New Shares Issued

  • Weekly Giveaway for our active users. N50,000 per Week. Do you want to contribute to this community? We are looking for contribution? What is hot right now? Sign up and get in on the ground floor of the newest, fastest growing Nigerian forum!

Olori Uwem

Well-Known Member
Mar 18, 2024
1,732
93
48
IEI Strengthens Balance Sheet: ₦2bn Deposit Converted to Equity, New Shares Issued

International Energy Insurance Plc (IEI) has taken a major capital-strengthening step by converting a ₦2 billion deposit into equity, signaling renewed investor confidence and a stronger financial footing for future growth.

Key Highlights of the Deal
• ₦2bn deposit converted to equity
• 1.25 billion new ordinary shares created
• Issue price: ₦1.60 per share
• Par value: ₦0.50 per share
• Investor: Norrenberger Advisory Partners Limited (NAPL)
• Approval: Granted at an Extraordinary General Meeting (EGM) held virtually on December 31, 2025

What This Means in Simple Terms

Norrenberger Advisory Partners Limited, which previously placed a ₦2bn deposit with IEI, has now become a shareholder in the company. Instead of IEI owing this money as a deposit, it is now permanent capital on the company’s balance sheet.

The newly issued shares will rank pari passu with existing shares—meaning NAPL enjoys the same rights as other shareholders.

Beyond the Conversion: Bigger Capital Plans Ahead

Shareholders also approved IEI’s plan to raise up to ₦17.5bn in additional capital, using one or a mix of the following options:
• Private placement
• Rights issue
• Public offer
• Strategic investor participation

The Board of Directors has been empowered to decide the timing, pricing, structure, and tranches of the capital raise, subject to regulatory approvals.

Corporate Actions Approved at the EGM ️
• Increase in the company’s share capital to accommodate new shares
• Amendments to the Memorandum and Articles of Association in line with CAMA 2020
• Full authorisation for the Board to engage advisers, file regulatory documents, and execute all approved resolutions

All prior actions taken by management in relation to these resolutions were also ratified by shareholders.

Why This Matters for Investors
• Strengthens IEI’s capital base
• Improves underwriting and investment capacity
• Reduces balance-sheet pressure from deposits
• Positions the company for strategic expansion within Nigeria’s insurance sector
• Signals institutional investor confidence

Big Picture

IEI’s move reflects a broader trend in the insurance space where companies are shoring up capital, improving solvency, and preparing for long-term competitiveness in a more regulated and capital-intensive environment.