Wema Bank has obtained regulatory permission for the allotment of its N40 billion rights offering, which began in December 2023.
This marks the completion of the first tranche of its recapitalisation exercise, which began before the Central Bank of Nigeria urged banks in the country to broaden their capital base.
This was disclosed in a statement by Wema on Friday, stating that both the Central Bank of Nigeria and the Securities and Exchange Commission had approved the N40 billion rights offering, according to The Punch.
Following this permission, Wema Bank has successfully raised the first tranche of its plan within the minimal threshold set by the CBN.
In his remark, the Managing Director/Chief Executive Officer of Wema Bank, Moruf Oseni emphasized the bank’s commitment to maintaining its Commercial Banking licence with National Authorisation, noting that the N40 billion rights issue is a step in that regard.
He said, “We are delighted to announce the conclusion of the first tranche of our Capital Raise Programme, after obtaining the relevant approvals of all regulatory authorities. Our move to commence our Capital Raise Programme very early demonstrates our push for excellence and with a strong emphasis on our digital play, we are set to amass more successes in the coming months.
“We were impressed by the vote of confidence given by our shareholders during the first rights issue exercise as our shares were fully subscribed. In addition, we obtained the approval of shareholders at our 2023 Annual General Meeting to raise an additional N150bn to meet the capitalisation threshold set by the CBN. The process is expected to be completed within 12-18 months. We are committed to providing optimum returns for every stakeholder and the successful conclusion of this N40bn rights issue is a bold step in the right direction.”
Recall that Wema Bank had said that it will take legal action in response to rumors that its banking licence is going to be revoked by the Central Bank of Nigeria.
