Recapitalisation: Wema Bank Gets Approval For N40bn Rights Issue

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Wema Bank has announced the successful conclusion of the first tranche of its recapitalisation exercise, securing all necessary regulatory approvals for the allotment of its N40 billion rights issue. This development was disclosed by the managing director of the bank, Mr. Moruf Oseni, in a statement to the press.

The bank launched the N40 billion rights issue in December 2023, which received approvals from both the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC). This initiative is part of a broader recapitalisation programme mandated by the CBN, requiring commercial banks to raise fresh capital to meet minimum licensing requirements within a 24-month period from April 1, 2024, to March 31, 2026.

Oseni expressed satisfaction with the bank’s shareholders for fully subscribing to its shares during the rights issue exercise. He noted that the bank also obtained approval from shareholders at its 2023 annual general meeting to raise an additional N150 billion to further bolster its capitalization in line with CBN requirements.

He emphasized the importance of initiating the capital raise program early. Oseni highlighted the bank’s financial performance improvement and the recent corporate ratings upgrades by Pan African credit rating agency, Agusto and Co., to BBB+ and retention of BBB rating by international rating agency, Fitch. These ratings affirm Wema Bank’s strong position in the market and its capacity to deliver optimal returns to stakeholders.

Looking forward, Oseni reaffirmed Wema Bank’s determination to dominate the digital banking space and the Nigerian financial services industry at large. He expressed confidence that the bank’s industry leadership would translate into significant market share growth over the medium to long term.

Source: Daily Trust

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