Thursday, September 21, 2017 10:00AM / Wema Bank
Wema Bank Plc. has announced the issuance of a
N50 billion Commercial Paper (“CP”) programme, having received requisite regulatory approval. “We are launching a N25bn CP programme as part of our N50bn CP programme and we are moving in two series: Series 1; N10 billion – 182-day tenor and Series 2; N15 billion- 270-day tenor,” Olukayode Bakare, treasurer at Wema Bank said Saturday on Channels TV.
“The Commercial Paper will open on Monday, 25th September 2017 and close on Friday, 29th September 2017,” he added.
The proceeds from the commercial paper will be channeled towards the retail segment of the Bank’s business, which have offered impressive returns in recent times. Policy initiatives by the government and the stable foreign exchange rate is expected to further support this business segment. In addition, the bank will continue to reinforce its position as a forward-thinking institution through the launch of ALAT, Nigeria’s first fully digital bank. The Bank stresses belief in a future where the differentiating factor among brands will be their ability to innovate, hence its commitment to continuous rollout of innovative products, while also maintaining its investment grade rating at (BBB-) and NPL below the 5% threshold.
While the Bank expects the short-term financing to help improve and sustain earnings, Treasurer Olukayode Bakare also stressed that it is a good deal for investors.
“The Bank is benchmarking similar tenor T-bills of the federal government of Nigeria and offering to pay an additional 150 basis points,” he said. He noted that investors do not want to lose money and want high yields, and Wema Bank’s CP offers both.
The Commercial Paper will be quoted on the FMDQ OTC Exchange with United Capital Plc and Greenwich Trust Limited being the joint lead arrangers to the issue. The minimum subscription amount is
N5,000,000 with integral increments of N1,000 in excess thereof.
For Further Information kindly contact Tunde Mabawonku (CFO) on +234 1 4622632, firstname.lastname@example.org, Funmilayo Falola (Brand & Marketing Communications) on +234 1 277 8627 Funmilayo.email@example.com or Ladipo Ogunlesi (Investor Relations) on +234 1 2778959 firstname.lastname@example.org
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