Wema Bank Secures Regulatory Approvals On N40bn Rights Issues

After concluding the  1st tranche of its Capital Raise Programme, Wema Bank Plc has  successfully secured regulatory approvals for the allotment of its N40bn Rights Issue which was initiated in December 2023.

With this, the banks have successfully   concluded   the   first   tranche   of   its   recapitalisation exercise having secured all relevant regulatory approvals.

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 is to simultaneously boost the Nigerian economy and strengthen the Nigerian financial services industry.

Hence, Wema  Bank  in  December   2023  launched  a N40billion Rights issue which has now been approved by CBN and the Securities   and   Exchange   Commission   (SEC).

In   a  statement  made  to   the  public  by  the   Bank,  Wema  Bank’s   managing director and CEO, Moruf  Oseni,  said, the bank’s resolve in retaining its  Commercial Banking licence with National Authorisation, adding that the N40 billion Rights Issue is 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 N150 billion 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 pointed out.

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.