#Wema Bank Strategic Capital Boost: Secures N40bn Rights Issue Amidst #CBN’s #Recapitalization Drive

…Raises N40billion through a Rights Issuance process.

…Part of its larger 2-year; N150billion Capital programme.

…Expected to Commence concluding tranche of additional Capital in Q4, 2024.

…Corporate Ratings affirmed by Fitch at BBB & Upgraded by Agusto to BBB+

Wema Bank has triumphantly completed the initial phase of its capital enhancement plan. With the green light from regulatory bodies, the bank has allocated its ambitious N40 billion Rights Issue, launched in December 2023.

This strategic financial maneuver aligns with the Central Bank of Nigeria’s (CBN) recent recapitalisation directive, issued in March 2024, which mandates commercial banks to fortify their capital reserves in accordance with their licensing requirements over a two-year period ending March 31, 2026. The initiative aims to invigorate the Nigerian economy and fortify the financial services sector.

Wema Bank’s proactive approach in December 2023, with the launch of the N40 billion Rights Issue, has now culminated in a successful first tranche, meeting the CBN’s stipulated capital thresholds. Moruf Oseni, the Managing Director and CEO of Wema Bank, reaffirmed the bank’s commitment to maintaining its Commercial Banking license with National Authorization.

“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 N150billion 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.”

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. Over the medium to long term, Wema Bank is positioned to not only dominate the digital Banking space but also the Nigerian financial services industry at large as it translates its industry leadership to significant market share.

#Wema Bank Strategic Capital Boost: Secures N40bn Rights Issue Amidst #CBN’s #Recapitalization Drive

Wema Bank is a leading financial services entity with banking operations across Nigeria, its leadership position in the digital banking space speaks to its aspirations to liberate Nigerian businesses and entrepreneurs by making digital platforms widely available.