Wema Bank, Backed By Adebutu, Launches 93.7 Million Rights Issue

Wema Bank has launched a 93.7 million rights issue to strengthen its capital base and meet Central Bank of Nigeria's capital adequacy requirements.

The bank plans to raise N200 billion 125.21 million in total, including a private placement, to achieve Systemically Important Bank SIB status.

Kessington Adebutu holds a 28.26 stake in Wema via Neemtree Limited, reinforcing his influence on the banks growth and capital strategy.

Wema Bank, a leading financial services provider partly owned by Nigerian gambling magnate Kessington Adebutu, has launched a 93.7 million rights issue to strengthen its capital base and meet the Central Bank of Nigerias CBN capital adequacy requirements.

This marks the first phase of the banks broader plan to raise N200 billion 125.21 million, which will also include a private placement in the coming months.

The rights issue , worth N149.3 billion 93.7 million, will see the bank issue 14.29 billion shares at N10.45 0.0065 each, offering shareholders two new shares for every three held as of Mar. 5. Set to open on Apr.14, this move is crucial for Wema Bank as it works to attain Systemically Important Bank SIB status and meet the CBNs recapitalization deadline in March 2026.

As part of a wider initiative, the CBN has directed banks to increase their capital thresholdsinternational banks to N500 billion 313.04 million, national banks to N200 billion 125.21 million, and regional banks to N50 billion 31.29 million. Wema, classified as a national bank, is focused on aligning with the N200 billion target.

The capital raised will boost Wemas ability to lend to Nigerias growing SME, retail, commercial, and corporate sectors. It will also support the banks digital transformation, including enhancements to ALAT, its flagship mobile banking platform, which has made significant inroads among Nigerias tech-savvy youth.