Wema Bank, Nigeria’s foremost innovative bank and pioneer of Africa’s first fully digital bank,
ALAT, has successfully concluded the first tranche of its recapitalisation exercise having
secured all relevant regulatory approvals for the allotment of its N40bn Rights Issue which
was initiated in December 2023.
In view of macroeconomic conditions, the Central Bank of Nigeria (CBN) in March 2024,
launched a recapitalisation programme requiring commercial banks to raise fresh capital in
alignment with the minimum requirement for their respective banking licenses, within a 24-
month timeline spanning April 1, 2024, to March 31, 2026. The goal of this recapitalisation
programme is to simultaneously boost the Nigerian economy and strengthen the Nigerian
financial services industry.
As a forward-thinking and pioneering bank, Wema Bank in December 2023 launched a N40bn
Rights issue which has now been approved by the Central Bank of Nigeria and the Securities
and Exchange Commission (SEC). With this remarkable development, Wema Bank has now
successfully raised the 1st tranche of its plan in the minimum requirement laid down by the
CBN.
In a statement made to the public by the Bank, Moruf Oseni, Wema Bank’s Managing Director
and CEO, iterated the Bank’s resolve in retaining its Commercial Banking license with National
Authorisation, adding that the N40bn Rights Issue is a step in that direction. “We are delighted
to announce the conclusion of the 1st 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 1
st Rights Issue exercise as our shares were fully subscribed. In addition, we obtained the approval of
shareholders at our 2023 Annual General Meeting (AGM) to raise an additional N150billion 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.”
In addition to the upward trend in the Bank’s financial performance and the success recorded
so far in its recapitalisation exercise, 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. Over the medium to long term, Wema Bank is positioned
to not only dominate the digital Banking space but also the Nigerian financial services industry
at large as it translates its industry leadership to significant market share.
Wema Bank is a leading financial services entity with banking operations across Nigeria, its
leadership position in the digital banking space speaks to its aspirations to liberate Nigerian
businesses and entrepreneurs by making digital platforms widely available.
