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Wednesday, 21 August 2013

Wema Bank plans to raise $200m for loans


Filed under: Company News |
 
Wema Bank plc, which recently raised N40 billion ($247.4 million) for expansion across the country, said it is seeking an additional $200 million over the next two years to fund its loan book.
“The sum of $100 million is planned to be raised in the first quarter of next year and the balance by 2015, when we would have improved on our return on equity,” Tunde Mabawonku, chief financial officer, said in an interview on Monday. “We’re looking at several options including bond, loan and debenture for funds.”
Wema Bank, which operates mainly in western Nigeria and the capital, Abuja, plans to seek regulatory approval for a national banking licence this year allowing it to operate in Nigeria’s six regions, he said.
The Central Bank of Nigeria (CBN) changed licensing rules as part of reforms after a debt crisis in 2009 brought the banking industry on the verge of collapse.
Lenders in Nigeria are either licensed as holding companies operating local and international units, or as national and regional banks.
The lender, according to Mabawonku, plans to open additional 20 branches in Nigeria to increase the number to 149. “Our loan book is planned to increase by 20 percent this year and 60 percent in 2014,” he said.

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