Wema Bank Plc plans to raise N200 billion in fresh capital through a rights issue and special placement starting April 1.
This initiative aims to strengthen the bank’s financial position.
Unlike a rights issue, which prioritizes existing shareholders, a private placement sells shares to select investors and institutions.
This method allows for a more targeted approach in raising capital.
Moruf Oseni, Wema Bank’s managing director, stated that this capital raise aligns with the Central Bank of Nigeria’s (CBN) recapitalization requirements.
The bank is committed to meeting regulatory standards.
Oseni revealed that this move represents the second and final tranche of the bank’s capital-raising exercise, following the earlier N40 billion raised.
This demonstrates the bank’s proactive approach to capital management.
In December 2023, Wema Bank initiated a N40 billion rights issue.
Subsequently, they received approval from both the CBN and the Securities and Exchange Commission (SEC) in 2024.
This approval underscores the bank’s dedication to regulatory compliance.
“We stand strong today as Nigeria’s oldest indigenous bank and a leading innovative institution,” Oseni emphasized.
He expressed pride in the bank’s legacy and future ambitions.
As Wema Bank celebrates its 80th anniversary this year, Oseni assures stakeholders of the bank’s commitment to excellence and strategic growth.
The team is focused on achieving ambitious goals.
Oseni also promised transparency throughout the capital-raising process.
Furthermore, he ensured regular updates for stakeholders and shareholders.
This commitment fosters trust and engagement with investors.
He assured investors that the capital raise would benefit both the bank and its stakeholders.
Moreover, he pledged to deliver exceptional returns on their investments.
This mutual advantage is a key focus.
On March 29, 2024, the CBN announced an increase in minimum capital requirements for commercial, merchant, and non-interest banks.
This change emphasizes the need for banks to strengthen their capital bases.
In August of last year, the SEC approved all offers from commercial banks amid ongoing recapitalization efforts.
This approval has spurred banks to pursue rights issuances and public offers to meet CBN deadlines.