Wema Bank eyes N200bn in fresh capital through Rights Issue, special placement
Business a.m.
Wema Bank recently made a major announcement pertaining to its capital raise strategy, stating that it will undertake a combination of a Rights Issue and Special Placement exercise, commencing on April 1, 2025, with the intention of securing N200 billion in fresh capital.
With the second and final tranche of its capital raising exercise, Wema Bank intends to build on the N40 billion secured in the initial phase, ultimately crossing the threshold for national banking authorisation as mandated by the Central Bank of Nigeria (CBN).
With the deadline for the CBN recapitalisation exercise looming, Wema Bank’s proactive approach to securing the necessary capital well ahead of the March 31, 2026 cutoff date is seen to demonstrate the bank’s commitment to maintaining its national banking license with ease.
The commercial banking company had prior to the CBN announcement launched a N40 billion rights issue as far back as December 2023, receiving the approval of the CBN and the Securities and Exchange Commission (SEC) in 2024.
Building on the success of its initial capital raise efforts in December 2023, Wema Bank now sets its sights on the second and final tranche of its capital raising exercise, targeting N200 billion, to be launched in April 2025.
With the bank having already surpassed 30 percent of the CBN’s mandated target of N200 billion, this milestone capital raise aims to put the finishing touches on Wema Bank’s recapitalisation strategy.
Moruf Oseni, MD/CEO, Wema Bank, confident in the outcome of the upcoming rights issue, assured shareholders and other stakeholders of a successful conclusion of the capital raise programme.
“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,” he stated.
In line with its commitment to transparency and regulatory compliance, Wema Bank emphasised that it has embarked on securing the necessary approvals from the relevant regulatory bodies to ensure that the capital raise exercise adheres to all applicable guidelines and standards.