Thursday 02 September 2010
- Culled from Business HallmarkWema Bank announced on Wednesday that it had
placed N9 billion ($60 million) worth of new shares with two local investors to
boost its liquidity ratio ...and increase its branch network. This was disclosed by the bank in a
statement released by its spokesperson.Wema Bank was one of nine banks bailed out last year by the Central Bank
of Nigeria (CBN) because their weak capital bases posed a systemic risk. The
CBN has given Wema Bank until the end of September to recapitalise."The bank in its bid to recapitalise has offered 9 billion of its
shares to special investors, which has been taken up," said Wemas
spokesperson Amaka Okpala."It has been taken to the Nigerian Stock Exchange for consideration
and as we speak, 9 billion naira is already with the bank," she told
Reuters.The Bank had earlier detailed plans on how it intended to recapitalize
ahead of the CBN deadline. It said over N25 billion worth of non-performing
loans had been recovered by the end of July. It will also package around N37 billion
worth of non-performing loans for purchase by the state asset management
company (AMCON) when it becomes operational."Wema Bank is on the threshold of recovery as the combination of
fresh capital, loan recovery...and proceeds from the sale of toxic assets to
AMCON will take Wema beyond the capital it requires to carry on business,"
the bank said in a statement.