Wema Bank receives regulatory approval for $40 billion rights issue

Wema Bank has received regulatory approval for the allotment of a $40 billion rights issue commencing in December 2023.

This marks the completion of the first tranche of the recapitalization process that began before the Central Bank of Nigeria (CBN) directed banks in the country to increase their capital base.

Wema Bank’s statement on Friday shows that both the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) have approved a rights issue worth $40 billion.

With this approval, Wema Bank successfully raised the first tranche of its plan under the minimum requirement issued by the CBN.

Wema Bank’s Managing Director/Chief Executive Officer, Moruf Oseni, in his remarks on the approval, reiterated the bank’s decision to maintain its nationally authorized commercial banking license, adding that the N40 billion rights issue is a step in that direction.

He said: “We are delighted to announce the completion of the first tranche of our Capital Increase Programme, subject to appropriate approvals from all regulatory authorities. Our decision to launch the Capital Raise Program very early demonstrates our commitment to excellence, and with a strong focus on our digital game, we are poised to achieve further success in the coming months.

“We were impressed by the vote of confidence given by our shareholders during the first rights issue in connection with the full acquisition of our shares. Additionally, we have obtained shareholder approval at our 2023 Annual General Meeting to raise an additional USD 150 billion to meet the capitalization threshold set by the CBN. The process is expected to be completed within 12-18 months. We are committed to delivering optimal returns to every stakeholder, and successfully completing the $40 billion rights issue is a bold step in the right direction.”

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