Shareholders of Wema Bank Plc have endorsed the bank’s plan to raise fresh capital to the tune of N40bn.
While giving the approval at the bank’s Annual General Meeting in Lagos on Friday, the shareholders also agreed with its plan to raise the money from the capital market as well as from local, foreign and other investors, whether by private placement, public or rights offer and issuing ordinary shares for such equity.
The bank said the additional fund was needed to strengthen its balance sheet and support its business expansion.
The Managing Director, Wema Bank, Mr. Segun Oloketuyi, who noted that the tier 2 capital was a working capital, and not for acquiring more branches or assets, said proceeds from the recapitalisation would be channelled towards improving its operating systems.
He said the bank had been growing and needed to shore up its capital base.
He explained that the bank was involved in various activities aimed at building its brand and improving its customer base.