Wema Bank to Deepen Loan Portfolio with N25 Billion Additional Tier 1 Bonds

In a bid to strengthen its capital base and increase lending to Nigerian Small and Medium Enterprises (SMEs), Wema Bank Plc has announced the issuance of Perpetual Fixed Rate Non-Resettable Additional Tier 1 Subordinated Bonds worth N25 billion.

The bonds, which are being privately issued to targeted investors, come with loss absorption features and will not be listed on any Security Exchange. The bank intends to use the funds raised to deepen its loan portfolio in the retail and commercial lending space while also enhancing its information technology infrastructure.

The bonds will be issued in a dematerialized form under a trust deed in denominations of NGN1,000.00 with a minimum acceptable subscription of NGN1,000,000,000.00 (1 Billion Naira) and will carry an interest rate of 16%. They are perpetual in nature and may be called by the issuer at its sole option and subject to the relevant regulatory approvals.

Speaking on the bonds issuance, the Managing Director/CEO of Wema Bank Plc, Ademola Adebise, expressed optimism that the move would enable the bank to better support SMEs in Nigeria, which he described as “the lifeblood of the economy.”

He further noted that the bank’s digital dominance goal would also receive a significant boost from the improvements in its information technology infrastructure, which would be made possible by the bonds issuance.

The bonds issuance is being facilitated by Greenwich Merchant Bank Limited, Aluko & Oyebode, Olaniwun Ajayi LLP, United Capital Trustees, United Bank of Africa Plc, Greenwich Registrars and Data Solutions, and KPMG Professional Services, who are all professional parties to the Bond issuance.