Nigerian regional lender Wema Bank said on Monday it had received regulatory approval to issue a 35 billion naira ($220 mln) private share placement to strategic investors by the end of April, and apply to become national bank again.
Wema was one of the lenders forced to recapitalise its operations by the central bank in the wake of a financial crisis that nearly sank it and eight other lenders. It decided to meet tougher requirements by scaling down its business to become a regional bank in the 2009.
The regional lender said it will issue 23 billion ordinary shares at 1.50 naira per share to the investors and use the proceeds from the fund raising to expand its operations and boost its IT systems.
Wema, which was established in 1945, said it will start the process of securing a national banking license from the central bank after the share sale. (Reporting by Chijioke Ohuocha; Editing by Tim Cocks)
