by Kingseyi Fri Jul 20, 2018 4:17 amWema 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.
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.
