Wema Bank seals first tranche of N40bn right issue programme

Wema Bank has concluded the first tranche of its recapitalisation exercise having secured all relevant regulatory approvals for the allotment of its N40bn Rights Issue which was initiated in December 2023.

In March, the Central Bank of Nigeria (CBN), launched a recapitalisation programme requiring commercial banks to raise fresh capital in line with the minimum requirement for their respective banking licences, to simultaneously boost the Nigerian economy and strengthen the Nigerian financial services industry. The recapitalisation is to be completed within 24 months, from April 1, 2024, to March 31, 2026.

Wema Bank must raise N200 billion for the exercise to attain its target for a national banking licence.

Read also: Wema Bank seeks shareholder approval to raise N200bn

Moruf Oseni, Wema Bank’s managing director/ chief executive officer said that the lender will retain its commercial banking licence with national authorisation.

“Our move to commence our capital raise programme very early demonstrates our push for excellence and with a strong emphasis on our digital play; we are set to amass more successes in the coming months,” Oseni said.

He noted that shareholders had approved the first rights issue exercise as the bank’s shares were fully subscribed.

“In addition, we obtained the approval of shareholders at our 2023 annual general meeting to raise an additional N150 billion to meet the capitalisation threshold set by the CBN. The process is expected to be completed within 12-18 months. We are committed to providing optimum returns for every stakeholder and the successful conclusion of this N40bn Rights Issue is a bold step in the right direction.”

This comes as Wema Bank’s corporate rating was recently upgraded to BBB+ by Pan African credit rating agency, Agusto and Co, and retained at BBB by international rating agency, Fitch.