Proshare Logo
   Market Date: 30-01-2015   
Agriculture ARTS FINANCE All One Min News Archives Bonds Cap Mkt Sentiments Capital Market CASHLESS NIGERIA Commodities Corporate Earnings Daily & Weekly Market Updates Elections Enterpreneurship ETFs Forex Frauds & Scandals General Global Market Insurance Investors NewsBeat Islamic Finance Mergers & Aquisitions Money Market Mortgage Mutual Funds Nigeria Economy Oil Sector Opinions and Analysis Pensions People Personal Finance Politics Power Products & Services Professionals Property Public Offers Private Placements Regulators REITs Stock PICKS Taxation Telcos Travel & Tours Unlisted OTC MARKET World of Business

Wema Bank moves to raise N49bn

Category: Capital Market

  Read (1567)
Wema Bank moves to raise N49bn

Wednesday, 26 May 2010   

Wema Bank said on Tuesday that it planned to raise N49bn through a special placement with foreign and local investors and was confident it could recapitalise before the deadline given to it by the Central Bank of Nigeria.

Wema Bank is one of the nine banks bailed out last year in a N620bn CBN rescue because their weak capital bases posed a systemic risk. It was given until the end of June, 2010 to recapitalise.The bank said in a statement on Tuesday that it was optimistic that it would recapitalise within the timeframe set by the apex bank.

The bank said N34bn of the planned capital raising would be with identified foreign investors and a further N15bn with selected strategic local investors.It said it was also close to recovering N10bn in bad loans and would recover a further N10bn by discounting some non-performing assets with the proposed Asset Management Corporation of Nigeria.

AMCON, which is awaiting Presidential assent having passed through the National Assembly, aims to buy up bad bank loans in exchange for government bonds in order to free up banks‘ balance sheets and get them lending.Wema said a further N2bn of provisioned loans would be refinanced through a subsidised CBN fund.

The bank, which swung to a N795m pre-tax profit in the first quarter from a N2bn loss a year earlier, also said it would apply for a regional banking licence under the new CBN guidelines.The Governor of the CBN, Mr. Lamido Sanusi, has said he intended to do away with the universal banking model and separate banks‘ core lending business from more speculative capital market activities, such as stockbroking and asset management.

Different capital requirements will be introduced for banks depending on the activities they want to pursue.Regional banks will be required to have a minimum capital of N15bn and must operate in between five and 10 states within the country.

Financial institutions operating across all of the country‘s 36 states will be required to have a minimum capital of N25bn, while international banks must have N100bn.


Tags: , 

Comment With Your Facebook or Yahoo! ID

Latest news

News on Capital Market

About Us

Who We Are
Our Team & Partners
Corporate Governance
Advertise with Us
Subscribe / Unsubscribe
Site Map
News Feed - RSS
Contact Us
Volunteer Program
Message from CEO

News & Features
The Analyst / Market Data
Investor Relations Portal
The Regulator
Economy & Politics
Training Portal
Events Calendar
NewsStands - Online Reputation

Products and Services

Research & Market Intelligence
Analyst Services
Offers & Rights Support Service
Investor Relations Services
Alert & Subscription Services
Share Support Services
Proshare Consult
Event & Seminar Coverage
Market Directory
File a Complaint
News & Analysis

News from TheANALYST
Video News from WebTV
Money Market Updates
Opinions & Analysis
Nigerian Economy
Market Data
The Regulator
Discussion Forum

Subscriber Agreement
Privacy Policy
Data Policy
Copyright Policy
Comments in Site
Advertising Code
Conflict of Interest
Content Partnership
3rd Parties

Online Trading and Execution
Legal Support Services
Web/Technology Services
File a Complaint

CBN Governor 2014