Update On The Recapitalization Of Wema Bank
It will be recalled that in our Press Release dated October 4, 2010, the Central Bank of Nigeria (CBN) granted a 30 day extension to Wema Bank PLC to enable it conclude its recapitalization which ended October 30, 2010.
At the expiration of the deadline, the CBN is pleased to note that Wema Bank PLC was able to raise the sum of N7.5 billion from the Special Placement Offer, approved by the Securities and Exchange Commission (SEC) and was formally authorised during the bank’s Completion Meeting held on Tuesday, October 28, 2010.
The total subscriptions of N7.5 billion had been received in the Offer proceeds account domiciled with the Receiving Bank to the Offer, Skye Bank PLC. In addition, Wema Bank made recoveries of N4 billion on its outstanding loans within the same period.
Consequently, the CBN will embark on the verification of the capital raising exercise and confirmation of the loan recoveries made by the bank.
The full recapitalization of Wema Bank PLC is expected to be concluded with the sale of some of the bank’s non – performing loans to the Asset Management Corporation of Nigeria (AMCON) when the latter becomes operational.
Meanwhile, Wema Bank’s application for a regional commercial banking licence is also receiving the attention of the Central Bank of Nigeria.
All stakeholders are to be guided accordingly.
M. M. Abdullahi
Head, Corporate Communications
November 2, 2010
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