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Wema Bank to sell N20bn bond

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By Peter Egwuatu, with agency report

Wema Bank Plc yesterday said it would raise N20 billion via bond offering in August to boost its capital adequacy.

According to Reuters, Adebise said: “We need to enhance our funding. The bank is in the process of raising Tier II and the offer will be opened in August.”

The debt raise is the second tranche of a N50 billion bond programme. The bank said it has appointed parties for the offer and aims to boost its capital ratio to 15 percent before year-end.

The debt issue would help Wema Bank boost its capital ratio above its internal guidance of 15 percent, from 14.3 percent, the bank said.

The regulatory minimum capital ratio for Wema Bank and its peers is 10 percent.

The bank had earlier said it could issue debt assuming government bond yields dropped below 18 percent with falling inflation.

It also talked about raising equity in 2018 to bolster its capital ratio and cut its operating costs as its new digital strategy gains traction.

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