Wema Bank shareholders approve billion capital raise

Date:

May 29, 2024.

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Azonuchechi Chukwu.

Shareholders of Wema Bank Plc, one of the nation’s oldest commercial banks, have approved the bank’s quest to raise N200 billion in capital at the group’s annual general meeting (AGM) held electronically today.

Also, the shareholders endorsed the management’s 50 kobo per share dividend payouts for the year ended December 31, 2023, recommended by the board of directors.

The bank intends to raise N200 billion or more through various means such as public offers, rights issues, and private placements to meet the Central Bank of Nigeria’s recapitalization directives for a nationally licensed bank and achieve its business needs.

Shareholders also, among other things, approved that the company increase its issued paid-up share capital from N6.429 billion to N25 billion by creating an additional 37.14 billion ordinary shares, each valued at 50 kobo, which will rank pari-passu with the existing ordinary shares of the company.

Addressing shareholders at the meeting, the Chairman Board of Directors, Mrs. Oluwayemisi Olorunshola, said the bank closed out its digital dominance in a three-year strategy in 2023.

Olorunshola noted that this has now been replaced by the top tier in a year plan focused on driving the bank’s growth into one of the largest banks in the industry over the next three years.

“We will continue to work towards becoming a leading bank and also continue with our ongoing efforts to strengthen our corporate and commercial play.

In addition, we will continue our aggressive strategy to improve our lending business alongside trade and other revenue lines, as well as work to drive growth through digital capabilities in the long term.” she said.

Olorunshola noted that the bank raised N21 billion in additional tier 1, Quasi-Equity capital during the year and also completed an N40 billion Rights issue at the end of the year which shows investors’ confidence in the enterprise.

She added that the bank closed a partnership with ECOWAS Bank for Investment and Development (EBID) to secure $50m in funding to drive business in the Agric and SME segments. (www.naija247news.com).

Chukwu Azochukwu, The Naija247news
Chukwu Azochukwu, The Naija247newshttps://gravatar.com/azonuchechivchukwu
Azonuchechi Chukwu - Business Journalist at Naija247news.com Azonuchechi Chukwu is a seasoned business journalist contributing to the insightful coverage of economic and financial news at Naija247news.com. With a passion for unraveling the complexities of the business world, Azonuchechi brings a wealth of expertise and dedication to his role. As a Business Journalist, Azonuchechi specializes in providing comprehensive analyses of market trends, corporate developments, and economic indicators. His in-depth reports offer Naija247news.com readers a nuanced understanding of the forces shaping the Nigerian and global business landscapes. Azonuchechi Chukwu's commitment to journalistic excellence is evident in his ability to translate complex financial information into accessible and engaging narratives. Whether exploring stock market fluctuations, corporate strategies, or economic policies, he strives to deliver content that empowers readers with valuable insights. With an educational background in business and a keen interest in the intersection of finance and technology, Azonuchechi stays at the forefront of industry dynamics. His coverage extends beyond traditional financial reporting, encompassing the dynamic realms of fintech, entrepreneurship, and sustainable business practices. Azonuchechi Chukwu's work goes beyond the surface, aiming to foster financial literacy and awareness among Naija247news.com's audience. By demystifying economic complexities and shedding light on emerging opportunities, he plays a pivotal role in keeping readers well-informed in the fast-paced world of business. As Naija247news.com's Business Journalist, Azonuchechi Chukwu continues to make meaningful contributions to the platform's mission of delivering timely, accurate, and relevant business news to its diverse audience. His dedication to journalistic integrity and his ability to navigate the intricacies of the business realm make him an invaluable asset to the Naija247news.com team.

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