Company Overview

  • The Issuer is Wema Funding SPV Plc; a special purpose entity incorporated in June 2016 for the purpose of issuing bonds to the public, the sponsor and exclusively to cater for the funding needs of the Sponsor.
  • The Sponsor is Wema Bank, a mid-sized commercial bank in Nigeria, incorporated in May 1945, and commenced banking operations the same year.
  • The Bank’s shares were originally listed on the NSE in 2004, but FCMB delisted from the local bourse in 2013, following the adoption of a holding company structure by FCMB Group Plc (“the Group”), with FCMB becoming a wholly owned subsidiary of the Group.
  • The Group is currently listed on the NSE.

     

    Execution Background

  • In September 2016, Wema Bank Plc issued its first ever debt instrument to the local debt markets through a sponsored SPV.
  • As a result of the rating of the Bank (BBB-), a subordinated bond issued by the bank becomes non-investment grade. Hence, the use of an SPV.
  • The proceed from the bonds issued by the SPV was invested in a sub-debt of the bank and in FGN securities.
  • The transaction followed successful investor forum held in Intercontinental Hotel, Lagos on the 16th of August 2016.
  • The book build period opened on 6th September 2016 and closed on 21st September 2016.
  • Indicative pricing was 17.50% - 18.50%. The order book grew rapidly allowing final pricing to be set at a yield of 18.50%.

     

    UCML’s Role and Key Achievements

  • UCML acted as Lead Issuing House/Financial Adviser on the transaction
  • UCML advised the bank on the most feasible bond structure given the rating of the bank
  • UCML structured the deal to meet regulatory and investors’ standards. As such, the bank was the second to issue a BBB- debt within the local market
  • UCML successfully led the transaction and raised the much needed funds even in a depressed market.
  • ss UCML’s sales team collected very strong feedback during meetings with investors – institutional and retail

    View Transaction Terms
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