Commercial Paper Project

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 FIFTY BILLION NAIRA COMMERCIAL PAPER(“CP”) ISSUE.

Wema Bank Plc (Bloomberg:Wemabank:NL) (“Wema“”the Bank”) seeks to raise up to ₦50 billion via a commercial paper (“CP“) Programme to finance its working capital.

See below indicative terms of the offer:
Issuer
Wema Bank Plc
Currency
Nigerian Naira
Joint Lead Arrangers
Greenwich Trust Limited; United Capital Limited
Other Parties
Cowry Asset Management Limited; Investment One Financial

Services Limited And Qualinvest Capital Ltd
Programme
Commercial Paper Programme
Programme Size
N50,000,000,000 (Fifty Billion Naira)
Issue Size
Up To N50billion
Series 1
N25,000,000,000,00 (Twenty-Five Billion Naira Only)
Tenor
182days And 270days
Structure
Fixed Rate Discounted And Bullet Repayment At Maturity
FGN Benchmark Yield
182 Days And 364 Days T-Bill Rates At The Date Of Issuance
Indicative Spread To Benchmark:
Up To Max Of 175bps (Dr Max.: 19.15%)
182 Days

Indicative Spread To Benchmark:
Up To Max Of 200bps (Dr Max.: 20.00%)
270days

Purpose
To Augment Working Capital
Rating
Fitch-“BBB“, GCR -“BBB-“
Listing/Quotation
FMDQ-OTC

INVESTMENT BENEFITS

·         Opportunity to earn attractive yields at short maturities: Like FGN T-bills, this is a discount instrument priced at yields higher than comparable (182 and 270 days) benchmark treasury instruments. While also offering diversification benefits for fixed income portfolios.

·         Investment is tax free and free of transaction costs.

·         Liquidity is assured as the CP will be listed and tradable on the FMDQ-Bloomberg E-Bond trading and Surveillance System: FMDQ provides credibility for quoted CPs through an efficient listing process supported by robust rules which serves to ensure liquidity, transparency and aid ease of entry and exit from the CP market.

·         Investment Grade Credit Rating: Wema is currently rated “BBB” by both Fitch and CGR with a stable outlook. This is a great opportunity for investors seeking to invest his high quality/low risk investments.

·         Can be used to secure credit/loans from any financial institution.


ABOUT THE ISSUER

·         Established in 1945, Wema Bank Plc is Nigeria’s longest surviving indigenous bank: With over 140 branches Nationwide & a workforce of over 1,000 Wema offers a boutique of financial services ranging from retail & SME banking, Corporate banking, treasury, trade services and financial advisory.

·         Stable Growth, improved Margins, Good Management and Strategy: Thanks to its experienced/stable Management team and focus on mid-market Corporates/retail segments, Wema for the past three years has met on its strategic focus. This reflects in improved profitability margins and stable growth.

KEY HIGHLIGHTS FROM FIRST HALF 2017 FINANCIAL REPORT

·         Gross earnings increase to N30.37 billion representing a 25.17 % growth from Q2 2016, driven primarily by 25.84% increase in interest income to N25.37 billion and 21.92% rise in non-interest income.

·         Year-on-Year 10% growth in PBT
·         Capital Adequacy Ratio (CAR) increase to 12.71% from 11.06% as at Full Year 2016.

·         Driven by a decline in the volume of Loans and Advances, Non-Performing Loans (NPL) remained below the 5% mark at 4.91%. This is well below the banking industry average of 14% at the end of 2016.

·         WEMA Banks growth strategy- project LEAP- revolves around the banks retail business strengthened by May 2017 launch of ALAT, Nigeria’s first fully digital bank.








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