Wema Bank said on Wednesday it had placed 9 billion naira ($60 million) worth of new shares with two local investors to boost its liquidity ratio and increase its branch network.

Wema Bank was one of nine lenders bailed out last year in a $4 billion central bank rescue because their weak capital bases posed a systemic risk. The central bank has given Wema until the end of September to recapitalise. "The bank in its bid to recapitalise has offered 9 billion of its shares to special investors, which has been taken up," said Wema's spokesperson Amaka Okpala. "It has been taken to the Nigerian Stock Exchange for consideration and as we speak, 9 billion naira is already with the bank," she told Reuters. Wema in May detailed plans on how it intended to recapitalise ahead of the central bank deadline.
It said over 25 billion naira worth of non-performing loans had been recovered by the end of July. It will also package around 37 billion naira worth of non-performing loans for purchase by the state asset management company (AMCON) when it becomes operational.
Nigeria is in the process of setting up AMCON, which will buy up non-performing loans in exchange for government bonds. "Wema Bank is on the threshold of recovery as the combination of fresh capital, loan recovery...and proceeds from the sale of toxic assets to AMCON will take Wema beyond the capital it requires to carry on business," the bank said in a statement.