Wema Bank has issued a N25 billion bond to selected investors in order to strengthen its capital base.
The bond will not be placed on any security exchange, according to a corporate notice dated Thursday and signed by the Corporate Secretary, Johnson Lebile.
The notice read, in part:“Wema Bank Plc decided on the issuance of the bonds as a means of shoring up its capital base to facilitate the bank’s business of lending to the Nigerian small and medium enterprise businesses alongside deepening the bank’s loan portfolio in the retail and commercial lending space.”
The bonds would be issued in dematerialized form under a trust deed in denominations of N1,000.00 with a minimum acceptable subscription of N1bn and a 16 percent interest rate, according to the bank.
The bond issuance was professionally handled 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.