Wema Bank completes N150bn rights issue, surpasses recapitalisation target

Wema Bank Plc says it has completed its N150 billion rights issue to meet the recapitalisation target.

The bank, in a statement on Thursday in Lagos, said it secured approvals from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).

The rights issue, which opened on April 14 and closed on May 21, was oversubscribed, underscoring investor confidence in the bank’s strategic direction and governance.

According to the statement, with the successful completion, the bank now exceeds the N200 billion minimum capital requirement for commercial banks with national authorisation.

“This rights issue was undertaken in response to the CBN’s directive on the recapitalisation of banks in Nigeria. With the successful completion and regulatory approval, Wema Bank has now met the N200 billion minimum capital requirement applicable to commercial banks with national authorisation,” the statement reads.

In addition, the bank recently concluded a N50 billion private placement, which is currently awaiting regulatory approval.

Commenting on the milestone, Moruf Oseni, managing director and chief executive officer of Wema Bank, reaffirmed the bank’s commitment to sustained growth and stakeholder value.

“As a growth-driven Bank, the industry recapitalisation requirement came as a welcome mission, and we undertook it with full confidence,” Oseni said.

“Our success in surpassing the N200 billion benchmark ahead of the 2026 deadline not only reinforces our strong financial standing as a bank but also attests to the mutual trust and confidence that exists between Wema Bank and its shareholders.

“We do not take this trust for granted and we take this moment to firmly reiterate our commitment to continue delivering optimum value to every shareholder and stakeholder of Wema Bank.”

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

In July, the financial regulator said only eight banks had fully met their recapitalisation requirements.