Wema Bank has announced plans to raise an additional N200bn in its final tranche of the recapitalisation exercise.
According to a statement from the bank on Wednesday, the additional funds would be raised via a combination of rights issues and a private placement exercise set to go live on April 1, 2025.
The Central Bank of Nigeria in March 2024 issued fresh capital thresholds for banks operating in the country.
According to the CBN, commercial banks with international authorisation are to increase their capital base to N500bn, commercial banks with national licences must meet an N200bn threshold, while those with regional authorisation are expected to achieve an N50bn capital floor.
Similarly, non-interest banks with national and regional authorisations will need to increase their capital to N20bn and N10bn, respectively.
The banks were given till March 2026 to meet these capital requirements using three options which include the issuance of new shares, through offers, rights issues, or private placements, mergers and acquisitions, and changing license authorisation which is a function of upgrading or downgrading their license category.
Wema Bank, which is the pioneer of Africa’s first fully digital bank, ALAT, said this tranche would mark the second and final leg of its capital raising exercise, to supplement the N40bn raised in the first tranche.
This exercise will ensure that Wema Bank surpasses the CBN minimum requirement for national banking authorisation.
Ahead of the announcement of the new capital base by the apex bank, Wema Bank launched an N40bn rights issue in December 2023 and received the approval of the CBN and the Securities and Exchange Commission in 2024.
Commenting on the upcoming rights issue, Wema Bank’s Managing Director/Chief Executive Officer, Moruf Oseni, assured shareholders and other stakeholders of a successful conclusion of the capital raise programme.
He 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.
“This capital raise will be a win-win for us all. You can trust as always that your investment in Wema Bank will produce exceeding returns. This is our promise to you.”
Oseni has in the past revealed that the bank would be seeking to maintain its national operating licence.
