Wema Bank to raise N200bn via rights issue, special placement

Wema Bank Plc has announced plans to raise N200 billion in fresh capital through a rights issue and special placement from April 1.

Unlike rights issue which prioritises the shareholders of a company in the sale of securities, a private placement is when shares is sole to pre-selected investors and institutions rather than on the open market.

In a statement on Wednesday, Moruf Oseni, Wema Bank’s managing director, said the capital raise aligns with the Central Bank of Nigeria’s (CBN) recapitalisation requirement.

Oseni said the move is the second and final tranche of the bank’s capital raise exercise after the N40 billion raised earlier.

He disclosed that before the CBN’s announcement, the bank had already initiated a N40 billion rights issue in December 2023 and obtained approval from both the regulator and the Securities and Exchange Commission (SEC) in 2024.

“We stand strong today not just as Nigeria’s oldest indigenous bank but also as Nigeria’s leading innovative bank,” Oseni said.

“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.”

Oseni also assured investors that the capital raise would be mutually beneficial for the bank and its stakeholders, promising them exceeding returns on their investment.

On March 29, 2024, the CBN announced an upward review of the minimum capital requirements for commercial, merchant, and non-interest banks.

In August last year, the SEC said it has approved all the offers it received from commercial banks amid the ongoing recapitalisation exercise.

Since then, several banks have announced rights issuances and public offers in a race to meet the CBN capital requirement deadline.