Wema Bank backed by Kessington Adebutu secures approval to raise $26.3 million

Feyisayo Ajayi -

Key Points:

  • Wema Bank completes first phase, raising $26.3 million, aligning with CBN’s capital requirements by March 2026.
  • CEO Moruf Oseni underscores Wema Bank’s commitment to retaining its national banking license through strategic recapitalization efforts.
  • Wema Bank’s 2023 performance shows significant growth, positioning it as a leading financial services provider.

Wema Bank, a leading financial services provider partly owned by Nigerian gambling magnate Kessington Adebutu, has completed the first phase of its recapitalization strategy, securing regulatory approval to raise N40 billion ($26.3 million) rights issue initiated in December 2023.

Wema Bank’s bold move in recapitalization journey

The Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) have approved the bank’s 26.3 million rights issue. This milestone enables Wema Bank to raise capital under the CBN’s N200 billion ($132 million) minimum requirement set in March 2024. The recapitalization program mandates commercial banks to meet these requirements within 24 months, from April 1, 2024, to March 31, 2026.

In a public statement, Wema Bank’s Managing Director and CEO, Moruf Oseni, emphasized the bank’s commitment to retaining its commercial banking license with national authorization. “We are pleased to announce the successful completion of the first tranche of our Capital Raise Programme, having secured all necessary regulatory approvals,” Oseni said. “This early start underscores our dedication to excellence, and with a strong focus on our digital strategy, we anticipate further achievements in the near future.”

Oseni highlighted the shareholders’ full subscription during the first rights issue and revealed that at the 2023 Annual General Meeting, shareholders approved raising an additional N150 billion to meet the CBN’s capital threshold. This process is expected to be completed within 12-18 months. Oseni reiterated the bank’s commitment to delivering optimal returns to stakeholders, noting that the successful N40 billion rights issue is a significant step forward.

Wema Bank rating elevated to BBB+

Wema Bank has been at the forefront of innovation in the financial services industry, exemplified by the introduction of ALAT, Africa’s first fully digital bank. The bank’s corporate rating was recently elevated to BBB+ by Agusto & Co, a Pan African credit rating agency, and maintained at BBB by Fitch, a leading international rating agency.

Kessington Adebutu, a leading Nigerian gambling magnate and founder of Premier Lotto Limited, the nation’s oldest gaming company, holds a 28.09 percent stake in Wema Bank through Neemtree Limited. Established in 2013 as a special-purpose vehicle for strategic acquisitions, Neemtree Limited underscores Adebutu’s strategic investment approach.