Wema Bank to Raise N200bn to Meet CBN’s Recapitalization Mandate

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Olori Uwem

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Mar 18, 2024
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Wema Bank to Raise N200bn to Meet CBN’s Recapitalization Mandate

️ Bank: Wema Bank

Capital Raise Target: N200bn

Method: Rights Issue & Private Placement

Timeline: April 1, 2025

What’s Happening?

Wema Bank has announced plans to raise N200 billion as part of its final tranche in the ongoing recapitalization exercise. This move will ensure the bank surpasses the N200bn capital requirement set by the Central Bank of Nigeria (CBN) for banks with a national license.

This fundraise will be achieved through:

✔️ Rights Issue: Offering new shares to existing shareholders.

✔️ Private Placement: Selling shares directly to select investors.

The process is set to begin on April 1, 2025.

Why is Wema Bank Raising Capital?

In March 2024, the CBN introduced new capital requirements for commercial banks:

• International Banks: N500bn

• National Banks: N200bn

• Regional Banks: N50bn

Banks have until March 2026 to meet these thresholds via:

Issuing new shares (rights issues & private placements)

Mergers & acquisitions

License category adjustments

Wema Bank’s Strategy & Progress

• ✅ First Tranche: In December 2023, Wema Bank launched an N40bn rights issue, which was approved by CBN & SEC in 2024.

• ✅ Second & Final Tranche: The upcoming N200bn raise will solidify its national license and enhance market expansion.

CEO’s Assurance

Wema Bank’s MD/CEO, Moruf Oseni, expressed confidence in the bank’s financial growth and strategic positioning.

“We are Nigeria’s oldest indigenous bank and a leader in innovation. As Wema Bank turns 80 years old this year, we remain committed to transparency, shareholder value, and financial excellence.”

“This capital raise will benefit investors, customers, and the entire financial ecosystem. We are building Wema Bank into a formidable African financial powerhouse.”

What This Means for Investors & Shareholders

✔️ Strengthened financial position

✔️ Increased market expansion opportunities

✔️ Higher shareholder value & returns

Stay tuned for further updates as Wema Bank moves forward with this landmark capital raise!