Business
Wema Bank concludes 1st tranche of capital raise programme
- Raises N40billion through a Rights Issuance process
Part of its larger 2-year; N150billion Capital programme
Rights fully subscribed - Expected to Commence concluding tranche of additional Capital in Q4, 2024.
Corporate Ratings affirmed by Fitch at BBB & Upgraded by Agusto to BBB+
Wema Bank, Nigeria’s foremost innovative bank and pioneer of Africa’s first fully digital bank, ALAT, has successfully concluded the first tranche of its recapitalisation exercise having secured all relevant regulatory approvals for the allotment of its N40bn Rights Issue which was initiated in December 2023.
In view of macroeconomic conditions, the Central Bank of Nigeria (CBN) in March 2024, launched a recapitalisation programme requiring commercial banks to raise fresh capital in alignment with the minimum requirement for their respective banking licenses, within a 24-month timeline spanning April 1, 2024, to March 31, 2026.
The goal of this recapitalisation programme is to simultaneously boost the Nigerian economy and strengthen the Nigerian financial services industry.
As a forward-thinking and pioneering bank, Wema Bank in December 2023 launched a N40bn Rights issue which has now been approved by the Central Bank of Nigeria and the Securities and Exchange Commission (SEC). With this remarkable development, Wema Bank has now successfully raised the 1st tranche of its plan in the minimum requirement laid down by the CBN.
In a statement made to the public by the Bank, Moruf Oseni, Wema Bank’s Managing Director and CEO, reiterated the Bank’s resolve in retaining its Commercial Banking license with National Authorisation, adding that the N40bn Rights Issue is a step in that direction.
“We are delighted to announce the conclusion of the 1st 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 amass more successes in the coming months.
“We were impressed by the vote of confidence given by our shareholders during the 1st Rights Issue exercise as our shares were fully subscribed. In addition, we obtained the approval of shareholders at our 2023 Annual General Meeting (AGM) to raise an additional N150billion to meet the capitalisation threshold set by the CBN.
“The process is expected to be completed within 12-18 months. We are committed to providing optimum returns for every stakeholder and the successful conclusion of this N40bn Rights Issue is a bold step in the right direction.”
In addition to the upward trend in the Bank’s financial performance and the success recorded so far in its recapitalisation exercise, Wema Bank’s corporate rating was recently upgraded to BBB+ by Pan African credit rating agency, Agusto and Co, and retained at BBB by international rating agency, Fitch. Over the medium to long term, Wema Bank is positioned to not only dominate the digital Banking space but also the Nigerian financial services industry at large as it translates its industry leadership to significant market share.
Wema Bank is a leading financial services entity with banking operations across Nigeria, its leadership position in the digital banking space speaks to its aspirations to liberate Nigerian businesses and entrepreneurs by making digital platforms widely available.
The Chairman of the Mile 12 International Market in Lagos State Shehu Usman Jubrin has pinned the recent high cost of tomato, pepper, and other perishable items on insecurity and other factors.
A small basket of tomatoes goes for about N35,000 at the market while the price of pepper has also jumped, raising concerns among Nigerians.
But Usman says the insecurity in the north is a major factor for the hike in the cost of the items.
“The bone of contention, the real fact is just insecurity. Let me tell you, that’s the truth. And there’s absolutely nothing the country will do. This price hike will continue. They are still buying tomato, at the rate of N1,000 for three pieces,” he said on Monday’s edition of Channels Television’s The Morning Brief.
“Ninety-nine per cent of the people in IDP camps are farmers. They don’t know anything apart from farming – both male and female. The people who are on the farm and are farming with one eye closed are just about 1,500 out of like 5,000 farmers we have across the whole country.”
According to him, some of the farmers negotiate with and pay bandits before they can go to their farms to harvest the products.
“In those places where you are getting all these items, there are negotiations between them and the bandits who ask them, ‘How much are you going to pay me to harvest and bring to the market?’” the Mile 12 International Market leader said.
“So, for as long as those people are in IDP camps, the country will continue to be in trouble in terms of food items.”
He also linked it to other factors including supply shortage from the northern part of Nigeria to the south.
“Let me just talk about tomatoes first. From November, December, January, February, March, and April, up to May, you have tomatoes from the North.
“You have danja, danjumi, kadawa, Kano and then Katsina states. This is the off-season now, so we expect tomatoes from Ilaro, Ogbomosho, Abeokuta, and Osun to come to Lagos, you know, and also part of Cameroon. That is a kind of substitute for the northern one.
“But unfortunately, it’s late: the one from Cameroon, the one from Abeokuta and Ogbomosho. And as we approach the festive period, tomatoes will be expensive. The northern tomatoes are finished and we don’t have substitutes from the south.”
He also blamed the situation on pests, saying the diseases have led to low yields.
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