Ecobank Transnational Incorporated, the parent company of the Ecobank Group, has raised an additional $125m through a Eurobond tap, bringing the total size of its 2029 notes to $525m.
In a statement released during the week on the Nigerian Exchange Limited, the Lomé-based pan-African banking group disclosed that the tap was issued at a premium price of 102.634, translating to a yield of 9.375 per cent. This marks a 100-basis point improvement compared to the 10.125 per cent yield at which the original $400m notes were issued in October 2024.
The additional capital was raised through the reopening (tap) of its existing U.S. dollar-denominated five-year notes due October 2029, which will now form a single series with the initial offering.
According to the Group, the tap issuance witnessed strong investor interest, with an oversubscription of more than two times, as demand surged from a wide range of institutional investors. These included asset managers, banks, and development finance institutions from across Africa, the United Kingdom, Europe, the United States, Asia, and the Middle East.
The proceeds from the issuance will be used for general corporate purposes, with a major portion allocated to refinancing upcoming debt maturities, thereby strengthening the bank’s liquidity position and financial flexibility.
Speaking on the development, Group Chief Executive Officer of ETI, Jeremy Awori, said the successful outcome of the tap underscores investor confidence in the bank’s growth trajectory.
“We are encouraged by the strong support received from international investors, which underscores their continued belief in Ecobank’s resilience and progress in executing our Growth, Transformation and Returns strategy,” he said.
He added, “This tap enhances our financial flexibility and further reinforces our presence in the global capital markets.”
Also commenting, Group Chief Financial Officer Ayo Adepoju stated that the tap aligns with the group’s strategic objective of strengthening its balance sheet through diversified funding and improved debt maturity profiles.
“This successful tap further strengthens ETI’s financial position in line with its strategic objectives and reflects the institution’s commitment to proactively manage its balance sheet by diversifying funding sources and extending the average debt maturity profile of the Group,” Adepoju said.
He expressed appreciation to the syndicate of financial institutions that supported the transaction, including Absa, Africa Finance Corporation, African Export-Import Bank, Mashreq, and Standard Chartered Bank, who acted as Joint Lead Managers and Joint Bookrunners. Ecobank Development Corporation served as co-manager, while Renaissance Capital Africa acted as financial adviser.
Credit: punchng.com
