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.
·
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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