Wema Bank Plc says it has received shareholders’ approval to raise N50 billion through private placement to meet its capital raising programme target.
A private placement involves offering securities (like stocks or bonds) directly to a small, pre-selected group of investors, typically including institutional investors, wealthy individuals, or venture capitalists, rather than offering them to the general public.
The bank spoke in a statement filed on the Nigerian Exchange Limited (NGX) on Thursday.
Johnson Lebile, the company secretary, said the resolution was made after the bank’s annual general meeting (AGM).
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“It was unanimously resolved “that the Bank raises additional capital in the sum of N50,000,000.00 (Fifty Billion Naira) only by way of Private Placement to meet a portion of the minimum recapitalization requirement for a National licensed bank,” the statement reads.
Earlier this year, Wema Bank Plc announced plans to raise N200 billion in fresh capital through a rights issue and special placement from April 1.
Moruf Oseni, Wema Bank’s managing director, had said the exercise aligns with the Central Bank of Nigeria’s (CBN) recapitalisation requirement.
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Oseni said the move is the second and final tranche of the bank’s capital raise exercise after the N40 billion raised earlier.
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 had approved all the offers it received from commercial banks amid the ongoing recapitalisation exercise.
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