Wema to raise N85bn locally and N65bn from foreign investors

Proshare

December 10, 2007/Tribune

 

Indications have emerged that Wema Bank has concluded plans to raise N150 billion from the capital market through a combination of offers for subscription and foreign capital injection.

 

A breakdown of the figure shows that N85 billion will be raised locally from the capital market while the balance of N65 billion is the expected foreign capital injection from institutional investors.

 

The capital raising drive is part of the efforts to transform the bank from a local/regional bank to a notable international bank with branches in the major financial capitals of the world.

 

A statement by the bank’s Head of Corporate Communications, Tunde Olofintila, said offshore branches had been slated for opening in London, South Africa and China as well as Ghana to avail the international community of the excellent services of the bank.

 

 

 

According to Olofintila, the fund raising through the planned offer both from foreign investors and local public offer expected to be concluded before the end of the first quarter of 2008 and would be used for aggressive roll out of branches, expansion of information technology infrastructure, strengthening of subsidiaries and enhancement of its working capital.

 

As a prelude to its foray into the international banking arena, the bank said it had strengthened its corporate governance practice in line with internationally acceptable standards.

 

The bank’s spokesman further said that the bank was set for a phenomenal growth, setting for itself the top five positions in the nation’s banking landscape by 2010 – a target the bank intends to achieve through increased capitalisation, enhanced asset quality, robust risk management framework and dynamic management.

 

Other vehicles being employed to meet the target are aggressive branch roll out, enhanced customer service, diversified board structure and error – free banking,” Olofintela said.


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