Wema Bank Plc has surpassed the new minimum capital base of N200 billion after raising N157 billion in new equity funds from existing shareholders.
Some sources close to the bank said the bank’s rights issue of N150 billion was oversubscribed by N7 billion and the proceeds were being verified by the Central Bank of Nigeria (CBN).
The addition of proceeds of the rights issue and the existing qualified capital of N67 billion is expected to push Wema Bank’s share capital and share premium above N210 billion, more than the N200 billion minimum capital requirement for its national commercial banking licence.
“The process is currently undergoing final verification by the Central Bank of Nigeria, with approval expected in the coming weeks,” a source stated.
Sources said Wema Bank’s total shareholders’ funds could rise above N500 billion after the completion of the ongoing recapitalisation exercise, especially given the bank’s growth trajectory.
The oldest surviving indigenous bank also last week launched a private placement to raise about N50 billion in a strategic move that places the bank in a vantage position to play stronger roles as the banking recapitalisation heads to its final phase.
Managing Director, Wema Bank Plc, Mr. Moruf Oseni, in a panel interview with select journalists, said the combination of rights issue and private placement allowed existing shareholders to increase their stakes while also deepening the capital base through new investments under the private placement.
He explained that with the bank meeting the recapitalisation target, it would focus on leveraging the strengthened capital base to drive sustainable growth, expand lending capacity, enhance digital innovation, and improve overall customer experience.
He noted that Wema Bank has proven to be resilient pointing out that as a bank born out of a vision to cater to the needs of indigenous Nigerians, the bank has shown long-term commitment to serving Nigerians through various generations.
He said: “When such an important legacy is in your care, it places a burden of care on you to go above and beyond to ensure that the legacy lives on.
“In our quest to keep empowering people and providing value, we have continued to reinvent, innovate, and adapt, developing improved ways to create more significant impact and meet the needs of the people as times evolve. When you continue to add value, you remain relevant, and when you continue to adapt, change becomes a welcome challenge. This philosophy is how we have remained resilient for eight decades, which is why we will continue to thrive in the decades to come,” Oseni said.
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