International Energy Insurance Plc (NGX: INTENEGINS) has called an emergency meeting of its Board of Directors for 28th August 2025 at 12:00 noon via Microsoft Teams.
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In a regulatory filing on Tuesday, signed by Ranti Fajana, Company Secretary, the insurance stated that the meeting is to consider a proposal for Loan to Equity Conversion and share reconstruction.
Loan to Equity Conversion involves the exchange of equity for debt in order to restructure a company’s capital position. Doing so can improve a company’s fundamental ratios and put it on better financial footing.
A review of the Company’s balance sheet contained in the management account for the period ended 31st December 2024, showed a borrowing of ₦14.09 billion. This accounted for over 50% of the company’s ₦24.19 billion liabilities as of 31 Dec. 2024. The debt was held by Daewoo Securities (Europe) Limited.
International Energy Insurance Plc issued a bond valued at 1,850,000,000.00 Japanese Yen (JPY) to Daewoo Securities (Europe) Limited who acted as the foreign agent.
The bond has a tenor of 20 years commencing on 24 January 2008 and maturing on 23 January 2028. The bond was issued at a zero-coupon interest rate. A premium of 29% of the face value of the bond is payable on the maturity date.
The bond has options to subscribe to the equity of the Company for the period commencing on 25 January 2009 and closing on 24 January 2028. The option rights states that the Naira equivalent of the bond held shall form the consideration for the shares for which the option rights are being issued.
The 2024 management accounts noted that the current Board is engaging the new owner of the loan to restructure the said loan by converting the loan to common equity or a combination of ordinary and preference shares.
As at the time of this report, based on the prevailing exchange rate of 1 Yen to ₦10.36, the bond was valued as ₦19.17 billion. With a share price of ₦3.65 at the end of trading on Tuesday, the loan conversion will yield about 5,254,050,684 ordinary shares.
By January 1, 2025, International Energy Insurance Plc had a total of 1,284,065,489 ordinary shares. Only Norrenberger Advisory Partners held 649,873,013 ordinary shares, 49.39% of the total outstanding shares.
About the Company
The International Energy Insurance Plc was incorporated as Nigeria Exchange Limited on 26 March 1969.
IEI Plc commenced business as Nigeria’s first energy-focused insurance company, offering first-class underwriting solutions for both offshore and onshore risks, as well as general insurance business.
The name was changed to Mutual Life and General Insurance Limited in 1995. In 2000, the name of the Company was changed to Global Assurance Limited. In 2003, the Company’s name changed to International Energy Insurance Limited following the acquisition of 70% of the shares of Global Assurance Limited by SKI Consult.
On 30 November 20006, the company merged its operations with Rivbank Insurance Limited, renaming the combined business as International Energy Insurance Plc, thereafter, the Company was listed on the Nigerian Stock Exchange in 2007.
In July 2022, Norrenberger Advisory Partners Limited, an industry-leading, integrated financial services group that provides a comprehensive range of solutions to individuals and institutions, took over the operations of the company after obtaining approval from the National Insurance Commission (NAICOM). Norrenberger acquired a majority equity stake in the company, marking a new dawn in the history of International Energy Insurance Plc.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
