-Raises N7.5 billion via Special Placement 

By Peter OBIORA investadvocate

Nov 02 2010 20.32 GMT

Lagos (INVESTADVOCATE)-The Central Bank of Nigeria (CBN) on Tuesday November 02 2010 affirmed that Wema Bank Plc (Wema) is awaiting the Asset Management Corporation of Nigeria (AMCON) for the Bank’s full recapitalisation.

 

This was contained in a Statement Tuesday November 02 2010 signed by Mohammed Abdullahi, Head, Corporate Communications of the Apex Bank and made available to investadvocate in Lagos Nigeria.

 

“The full recapitalisation 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” CBN said.

 

Meanwhile, the CBN affirmed in the Statement that the Bank has raised N7.5 billion via Special Placement.

 

This is coming on the heels of an earlier Press Release issued by the Banking Regulatory Institution on the granting of an extension of 30 days to the Bank to enable it conclude its recapitilisation.

 

“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 recapitalisation which ended October 30, 2010” the Statement said.

 

The CBN affirmed that at the expiration of the deadline, Wema Bank was able to raise its planned N7.5 billion from a Special Placement it embarked on.

 

“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 Board Meeting (CBM) held on Tuesday, October 28, 2010” the CBN said.

 

The Apex Bank further affirmed that the total subscription 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” the Statement said.

 

Nigeria’s Central Bank said it will consequently embark on the verification of the capital raising exercise and confirmation of the loan recoveries made by the Wema Bank.

 

The Apex Bank also confirmed in the Statement that the Bank’s plan to operate as a Regional Commercial Bank is receiving attention from it.

 

“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” CBN said.