In view of macroeconomic conditions, the Central Bank of
Nigeria (CBN) in March 2024, launched a recapitalisation programme requiring
commercial banks to raise fresh capital in alignment with the minimum
requirement for their respective banking licences, within a 24-month timeline
spanning April 1, 2024, to March 31, 2026. The goal of this recapitalisation
programme was to simultaneously boost the Nigerian economy and strengthen the
Nigerian financial services industry.
Wema Bank in December 2023 launched a N40bn Rights Issue
which has now been approved by the Central Bank of Nigeria and the Securities
and Exchange Commission (SEC). With this remarkable development, Wema Bank has
now successfully raised the 1st tranche of its plan in the minimum requirement
laid down by the CBN.
In a statement made to the public by the Bank, Wema Bank
Managing Director and CEO, Moruf Oseni, reiterated the Bank’s resolve in
retaining its Commercial Banking licence with National Authorisation, adding
that the N40bn Rights Issue was a step in that direction.
“We are delighted to announce the conclusion of the 1st
tranche of our Capital Raise Programme, after obtaining the relevant approvals
of all regulatory authorities. 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.
“We were impressed by the vote of confidence given by our
shareholders during the 1st Rights Issue exercise as our shares were fully
subscribed. In addition, we obtained the approval of shareholders at our 2023
Annual General Meeting (AGM) to raise an additional N150billion 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,” he stated.
In addition to the upward trend in the Bank’s financial
performance and the success recorded so far in its recapitalisation exercise,
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. Over the medium to long term, Wema Bank is positioned to
not only dominate the digital Banking space but also the Nigerian financial
services industry at large as it translates its industry leadership to significant
market share.
Wema Bank is a leading financial services entity with
banking operations across Nigeria, its leadership position in the digital
banking space speaks to its aspirations to liberate Nigerian businesses and
entrepreneurs by making digital platforms widely available.