The Managing Director, Wema Bank, Mr Moruf Oseni, on Wednesday disclosed the bank’s plan to raise ₦200 billion in fresh capital to complete its capital raise exercise.
Oseni, who made this known in a statement in Lagos, said that the fresh capital would be raised through a combination of a rights issue and special placement. He said that the two would start on April 1 and would mark the second and final tranche of the bank’s capital raise exercise.
According to him, this will be supplementing the ₦40 billion raised in the first tranche and will ensure that the bank surpasses the CBN minimum requirement for national banking authorisation.
Oseni said that Wema Bank, had prior to the CBN’s announcement, already launched a ₦40 billion rights issue in December 2023.
“This received the approval of the CBN and the Securities and Exchange Commission (SEC) in 2024,” he added.
The managing director said this also resulted in the bank’s successful completion of the first tranche of its capital raise.
“With over 30 per cent of the CBN target of N200 billion already met, Wema Bank is proceeding to initiate the second tranche of capital raise come April 2025. This time, with the goal of raising N200 billion in fresh capital to complete its capital requirement,” he added.
He assured shareholders and other stakeholders of a successful conclusion of the capital raise programme. Oseni said: “We stand strong today not just as Nigeria’s oldest indigenous bank, but also as Nigeria’s leading innovative bank. Wema Bank turns 80 this year and I can safely tell you that we have never been more driven to excel.
“I am blessed to lead with the support of a team of determined and driven professionals who will leave no stone unturned in achieving our strategic aspirations.
“Indeed, we are building Wema Bank into a formidable force in the African financial services landscape.
“We remain dedicated to maintaining transparency throughout this process and will provide regular updates to all stakeholders and shareholders as we go forward.”
Oseni noted that the capital raise would be a win-win for all stakeholders, as the bank would embark on investment that would produce exceeding returns.
With the deadline for CBN’s recapitalisation exercise set for March 31, 2026, Oseni said that this move by Wema Bank would undoubtedly ensure the bank retains its national banking licence way ahead of the deadline.
According to him, the bank is working to secure all necessary approvals from relevant regulatory authorities, to ensure the process is conducted in full compliance with applicable guidelines.
(NAN)
