…Set to raise additional N200 bn in combination of Rights & Special Placement to complete CBN recapitalization requirement

Wema Bank, pioneer of Africa’s first fully digital bank, ALAT, has announced that it will raise capital through a combination of a Rights issue and Special placement exercise set to go live on April 1, 2025, with the goal of raising N200 billion in fresh capital. This would mark the second and final tranche of the bank’s capital raise exercise, supplementing the N40 billion raised in the first tranche, and ensuring the bank surpasses the CBN minimum requirement for national banking authorization.

In its usual manner as a proactive, innovative and forward-thinking bank, Wema Bank, had prior to the CBN announcement, already launched a N40 billion 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% of the CBN target of N200 billion already met, Wema Bank is proceeding to initiate the second tranche of capital raise come April 2025, this time, with the goal of raising another N200 billion in fresh capital to complete its capital requirement.

Confident in the outcome of the upcoming rights issue, Wema Bank’s MD/CEO, 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 explained.

With the deadline for CBN’s recapitalisation exercise set for March 31, 2026, this move by Wema Bank will undoubtedly ensure the bank retains its national banking license way ahead of the deadline.