By Kayode Ogunwale

Wema Bank Plc has announced its intention to raise additional capital to complete a significant capital raise. The bank intends to achieve this through a strategic combination of a Rights issue and a Special placement exercise, which is scheduled to commence on April 1, 2025. The primary objective of this initiative is to secure an impressive N200 billion in fresh capital.

This upcoming capital raise represents the second and final tranche of the bank’s overall capital raising efforts. It aims to complement the previously raised N40 billion from the first tranche, which successfully bolstered the bank’s financial position. With this latest round of fundraising, Wema Bank aims not only to enhance its capital base but also to exceed the minimum capital requirements set forth by the Central Bank of Nigeria (CBN) for national banking authorization. This proactive approach underscores the bank’s commitment to maintaining a robust operational framework and ensuring its continued growth in the competitive banking sector.

Wema Bank had, prior to the CBN announcement, already launched a N40bn rights issue as far back as December 2023, receiving the approval of the CBN and the Securities and Exchange Commission (SEC) in 2024.

This resulted in the Bank’s successful completion of the first tranche of its capital raise exercise. With over 30 per cent of the CBN target of N200bn already met, Wema Bank is proceeding to initiate the second tranche of capital raise come April 2025, this time, with the goal of raising N200bn in fresh capital to complete its capital requirement.

Wema Bank’s Managing Director, Moruf Oseni, assured shareholders and other stakeholders of a successful conclusion of the capital raise program.

According to him, “We stand strong today not just as Nigeria’s oldest indigenous bank but also as Nigeria’s leading innovative bank. Wema Bank turns 80 this year and I can safely tell you that we have never been more driven to excel.

“I am blessed to lead with the support of a team of determined and driven professionals who will leave no stone unturned in achieving our strategic aspirations. Indeed, we are building Wema Bank into a formidable force in the African financial services landscape”.

“We remain dedicated to maintaining transparency throughout this process and will provide regular updates to all stakeholders and shareholders as we go forward. This capital raise will be a win-win for us all.

“You can trust as always that your investment in Wema Bank will produce exceeding returns. This is our promise to you”, Oseni said.

According to Oseni, with the deadline for CBN’s recapitalization exercise set for March 31, 2026, this move by Wema Bank will undoubtedly ensure the bank retains its national banking license ahead of the deadline.

Reaffirming its stance as a bank committed to transparency and adherence to regulatory standards, Wema Bank said it is working to secure all necessary approvals from relevant regulatory authorities to ensure the process is conducted in full compliance with applicable guidelines.