Wema Bank to Raise N20bn Bond, Gets Substantive MD/CEO

Wema Bank Plc is set to raise up to N20 billion senior unsecured bond in Series 2 of its bond issuance progamme. The bank said on Friday that the new issuance followed a successful establishment of N50 billion Bond Issuance Programme.

In a notification to the Nigerian Stock Exchange (NSE), the bank explained that the series 2 of the bond is to be issued for a tenor of 5-7 years and the target market is the institutional investors. It added that the proceeds of the bond are intended to boost its working capital and meets its financing needs. The bank had raised N6.2 billion in its first tranche of the N50 billion debt programme.

The Chief Financial Officer of the bank, Mr. Tunde Mabawonku had last April hinted the plan to raise N20 billion from the bond market. He equally said the bank aimed to pay a dividend this year for the first time in a decade, paving the way for an equity sale next year.

“We would want to pay dividends first to existing shareholders before raising equity in early 2019. It could be a combination of rights issues and private placement,” Mabawonku had said.

Meanwhile, the bank has confirmed Mr. Ademola Adebise as managing director/chief executive officer(MD/CEO) of the bank, effective October 1, while Mr. Moruf Oseni has been named deputy managing director.

Adebisi was appointed the acting MD/CEO in July when the former MD/CEO, Mr. Segun Oloketuyi proceeded on terminal leave in July 2018.

He had been has been part of the bank’s executive management team since the transformation programme began in 2009 and has played a pivotal role in the execution of the strategic turnaround programme for the bank.

According to bank, “Adebise has over 28 years’ experience in the banking industry (inclusive of four years in management consulting), and has worked in various capacities in information technology, financial control & strategic planning, treasury, corporate banking, risk management and performance management.”

On the other hand, the bank said since joining the Wema Bank board in 2012, Oseni had contributed immensely to the growth of the bank’s retail business.

Until his appointment, he was the Executive Director in charge of retail business and ALAT.

Oseni brings a wealth of banking and non- banking experience to his new role. Before joining Wema Bank, Oseni was the CEO of MG Ineso Limited, a principal investment and financial advisory firm with interests in various sectors of the economy.