Wema Bank PLC (Bloomberg: WemaBank: NL), Nigeria’s foremost innovative bank and the pioneer of Africa’s first fully digital bank, ALAT, has announced the successful completion of the first tranche of its capital raise programme. The bank raised N40 billion through a rights issuance process, marking a significant step in its larger two-year, N150 billion capital programme.
The N40 billion rights issue, initiated in December 2023, has been fully subscribed and received all necessary regulatory approvals from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC). This tranche is part of Wema Bank’s effort to meet the CBN’s recapitalisation requirements, which were announced in March 2024. The CBN’s programme mandates commercial banks to raise fresh capital to align with minimum requirements over a 24-month period, from April 1, 2024, to March 31, 2026, to boost the Nigerian economy and strengthen the financial services industry.
Wema Bank’s Managing Director and CEO, Moruf Oseni, expressed his satisfaction with the completion of the first tranche, emphasizing the bank’s commitment to retaining its commercial banking license with national authorisation. “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 achieve more successes in the coming months,” Oseni said.
Oseni also highlighted the strong support from shareholders, noting that the shares were fully subscribed during the first rights issue exercise. He mentioned that at the 2023 Annual General Meeting (AGM), shareholders approved the plan to raise an additional N150 billion to meet the CBN’s capitalisation threshold. This process is expected to be completed within 12-18 months, aiming to provide optimum returns for stakeholders.
In recognition of its financial performance and successful recapitalisation efforts, Wema Bank’s corporate rating has been upgraded to BBB+ by Pan-African credit rating agency Agusto & Co., while international rating agency Fitch affirmed its rating at BBB. These ratings underscore Wema Bank’s robust financial health and its strategic positioning in the digital banking sector.
Wema Bank continues to lead in digital banking innovation, with a vision to empower Nigerian businesses and entrepreneurs through accessible digital platforms. The bank’s efforts to raise capital and strengthen its financial base are set to enhance its market position and drive future growth in Nigeria’s financial services industry.