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FMDQ OTC admits N8.15bn Wema Commercial Paper

By on September 18, 2015

FMDQ OTC Plc on Wednesday admitted the Wema Bank Plc N8.15 billion Series 1 Commercial Paper (CP) for trading having successfully  met the quotation requirements of  the securities exchange.

The N8.15 billion CP is under the N10 billion CP Issuance Programme of Wema Bank.

This is the  second CP, following the pioneer quotation of the Stanbic IBTC Bank Plc CP, to be quoted on FMDQ.

While congratulating Wema Bank, Managing Director/CEO of FMDQ OTC, Mr. Bola Onadele. Koko, noted that as a securities exchange, FMDQ promotes credibility for quoted CPs, through a highly efficient registration process.

“CP issuers quoting their securities on FMDQ gain access to a wide range of knowledgeable and capitalised investors through FMDQ members. Investors, on the other hand, enjoy improved liquidity which serves to ensure ease of entry and exit from the CP market,” he said.

He added that the CP gains access to the full complement of an FMDQ quotations service, which includes but not limited to the global visibility through its inclusion to the FMDQ Bloomberg E-Bond trading system and on the quotations page of the FMDQ website. Others include the transparency drive which is also characterised by continuous disclosure of relevant information (such as issuer, issuance type, outstanding value and issuer history) on instruments quoted on its platform.

In his remarks, the MD/CEO, Wema Bank Plc, Mr. Segun Oloketuyi said six years ago, the bank took a decision to refocus its operations and build a sustainable institution.

“The bank’s transformation was implemented in three phases, firstly to stabilise the bank, secondly to prepare the building blocks for growth and thirdly to go for growth. We are now within the third phase of the transformation project and the official listing of the Wema Bank CP is a testament of the success of the ongoing transformation project. As the bank continues to build on the success recorded in the various initiatives embarked upon, there has been an increase in patronage, clientele and transaction dynamics. Similarly, commercial customer transactions have increased, hence, the need to meet the short cycle financing needs of these customers,” he said.