FMDQ admits Wema Bank’s N8.15bn commercial paper

The Board Listings and Quotations Committee of FMDQ OTC Plc has approved the quotation of Wema Bank Plc’s N8.154bn Series 1 commercial paper notes under a N20bn commercial paper insurance programme on FMDQ.

Wema Bank’s commercial paper is the second commercial paper to be quoted on the FMDQ over-the-counter securities exchange, after the pioneer quotation of the Stanbic IBTC Bank Plc’s commercial paper.

A commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories and meeting short-term liabilities, according to Investopedia.

On Wednesday, at a ceremony to mark the quotation of the Wema Bank CP, the Managing Director/Chief Executive Officer, FMDQ, Mr. Bola Onadele, said that as a securities exchange, FMDQ “promotes credibility for quoted CPs, through a highly efficient registration process.”

According to him, CP issuers quoting their securities on FMDQ gain access to a wide range of knowledgeable and capitalised investors through FMDQ members, while investors, on their part, enjoy improved liquidity which serves to ensure ease of entry and exit from the CP market.

Onadele, who congratulated Wema Bank on the achievement, explained that commercial papers quoted on FMDQ OTC also gain access to the full complement of an FMDQ quotations service; which includes but is 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, among others.

The MD/CEO Wema Bank Plc, Mr. Segun Oloketuyi, said ahead of the sigining of the FMDQ quotations register and the presentation of the CP quotation certificate that Wema Bank had taken a decision to refocus its operations and build a sustainable institution six years ago.

He explained that the bank’s transformation was implemented in three phases; firstly to stabilise it, 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 commercial paper is a testament of the success of the ongoing transformation project,” he said.

“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.”

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