Board of directors of Wapic Insurance plc, a multi-line West African insurance firm, has announced that Wapic has established a Global Depositary Receipts (GDR) programme with the Bank of New York Mellon (BNY).
The Regulations sponsored GDR will become effective on June 15, 2016. The GDR is a negotiable instrument denominated in dollars, similar to a stock certificate, which is issued by a US depository bank (BNY) to evidence one or more depositary shares, each of which represent a fixed number of ordinary shares of Wapic. The local custodian bank will be StanbicIBTC Bank plc.
The establishment of the GDR programme will not be accompanied by a listing or capital raising. It is not a new offering of shares and the GDR’s are based on the shares of the Company currently in issue.
The Board believes that the programme will provide the company and indeed the Nigerian insurance industry with a measure of exposure to the US and European capital markets, and is usually a precursor to approaching the global market for capital raising, upon regulatory approvals.
Wapic is the first Nigerian insurance company to participate in a GDR program and now joins the ranks of other leading African financial institutions that have established DR programmes.
Aigboje Aig-Imoukhuede, chairman, Wapic Insurance plc, commented: “We are delighted to have our GDRs quoted on the International market, which will facilitate ownership and holding options for a broader range of investors. This will increase awareness of Wapic’s strategy and transformative growth amongst the US investment community. Wapic continues to deliver on its promise to transform the insurance industry with its strong growth, solid risk approach and governance in Nigeria and Ghana.”
Through a diverse portfolio of products and a commitment to providing the best customer experience possible, Wapic, with an AM Best Financial Strength rating of “B-” and an Issuer Credit rating of ‘bb-”, has significantly enhanced its underwriting capacity placing it among the top five insurance companies in Nigeria by solvency and capital.