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Wema Bank Plc has successfully completed the first tranche of its recapitalisation exercise, securing all necessary regulatory approvals for its N40 billion rights issue initiated in December 2023.
In March 2024, the Central Bank of Nigeria (CBN) launched a recapitalisation programme requiring commercial banks to raise fresh capital to meet the minimum requirements for their respective banking licences within a 24-month period from April 1, 2024, to March 31, 2026. The aim of this programme is to bolster the Nigerian economy and strengthen the financial services industry.
Anticipating the CBN directive, Wema Bank launched its N40 billion rights issue in December 2023, which has since received approvals from both the CBN and the Securities and Exchange Commission (SEC). This development marks the successful completion of the first tranche of Wema Bank’s plan to meet the CBN’s capital requirements.
In a statement, Wema Bank’s Managing Director and CEO, Moruf Oseni, emphasized the bank’s commitment to retaining its commercial banking licence with national authorization. He noted that the N40 billion rights issue is a significant step towards this goal.
“We are delighted to announce the conclusion of the first tranche of our Capital Raise Programme, following the approvals from all regulatory authorities. Our early commencement of this programme underscores our dedication to excellence and our strong focus on digital banking. We anticipate further successes in the coming months,” Oseni stated.
Oseni also highlighted the positive response from shareholders, who fully subscribed to the first rights issue exercise. Additionally, at the 2023 Annual General Meeting (AGM), shareholders approved the plan to raise an additional N150 billion to meet the CBN’s capitalization threshold. This process is expected to be completed within the next 12-18 months. “We are committed to providing optimal returns for all stakeholders, and the successful conclusion of this N40 billion rights issue is a significant step in that direction,” he added.
Wema Bank’s corporate rating was recently upgraded to BBB+ by Pan-African credit rating agency Agusto & Co., and it retained a BBB rating from international rating agency Fitch.
In the medium to long term, Wema Bank aims to not only dominate the digital banking space but also significantly increase its market share in the Nigerian financial services industry.
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