News Column

Shareholders Approve Wema Bank's Bond Issuance Plan

May 29, 2014

Bamidele Ogunwusi

Despite its inability to offer them dividend for another year, shareholders of Wema Bank, on Wednesday in Lagos, pledged their loyalty to the bank until it return to full profitability.

Speaking at the bank's annual general meeting, the shareholders consequently approved plans to raise debt capital during the year.

Fielding questions at the meeting, Managing Director of the bank, Segun Oloketuyi, said the capital raising exercise is to ensure that Wema competes with others in the business and that this will go a long way to bring the bank back to its enviable position as toast of the Nigerian banking community and pride to its shareholders.

Specifically, he said the money is needed "because of growth plan we have. We need to enhance our capital adequacy ratio. We don't want to raise convertible loan and we are not raising equity, we are raising debt capital that we will pay back."

On efforts at re-obtaining national operating license, Oketuyi said the bank is currently putting finishing touches to its demand for it and that very soon, it will be achievable.

"We know what it takes to have a national license. We are going through the process with the Central Bank of Nigeria. The process of converting from regional license to national license is on. National license is being processed and we know what it takes to convert to national license. It is N25 billion for national license and we already have N41 billion", he added.

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Source: AllAfrica

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