Nigeria’s Wema Bank Completes N40bn Recapitalisation Phase, Gains Approvals

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Wema Bank has successfully concluded the first tranche of its recapitalisation exercise, securing all necessary regulatory approvals for its N40 billion Rights Issue initiated in December 2023.

In March, the Central Bank of Nigeria (CBN) launched a recapitalisation programme mandating commercial banks to raise fresh capital to meet the minimum requirements for their banking licences. This initiative aims to bolster the Nigerian economy and strengthen the financial services industry, with the recapitalisation set to be completed between April 1, 2024, and March 31, 2026.

Wema Bank needs to raise N200 billion to achieve its target for a national banking licence.

Moruf Oseni, Wema Bank’s managing director and CEO, emphasized the bank’s commitment to maintaining its commercial banking licence with national authorisation.

“Our early start on the capital raise programme highlights our commitment to excellence, particularly with a focus on digital advancements. We expect continued success in the coming months,” Oseni stated.

He added that shareholders had approved the initial rights issue exercise, with the bank’s shares being fully subscribed. The bank also received approval at its 2023 annual general meeting to raise an additional N150 billion to meet the CBN’s capitalisation threshold, with the process expected to be completed within 12-18 months.

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.

By Naija247news
By Naija247newshttps://www.naija247news.com/
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

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