By Yahaya Umar
Ecobank Transnational Incorporated ,ETI, the parent company of the Ecobank Group, has raised an additional $125m through a tap of its $400m 10.125% Eurobond due October 2029.
The new issuance was priced at 102.634, resulting in an effective yield of 9.375%, representing a notable 100 basis points tightening from the original issue.
According to the company notice to the Nigerian Exchange Limited seen by this newspaper, the transaction, which drew investor demand, attracted participation from a broad range of institutional investors, including asset managers, banks, and development finance institutions across Africa, Europe, the United Kingdom, the United States, Asia, and the Middle East.
The final order book was oversubscribed by more than twice, reflecting strong market confidence in Ecobank’s financial strategy and long-term growth prospects.
The new notes will be consolidated and form a single series with the existing $400m notes issued on October 15, 2024, maturing in 2029.
The proceeds from the issuance will be used primarily to refinance upcoming debt maturities and for other general corporate purposes, strengthening Ecobank’s liquidity position and financial flexibility.
Group Chief Executive Officer of ETI, Jeremy Awori, said that the company is 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 ,GTR, strategy.
“This tap enhances our financial flexibility and further reinforces our presence in the global capital markets”, he said.
Group Chief Financial Officer of ETI, Ayo Adepoju, added that the successful tap further strengthens ETI’s financial position in line with its strategic objectives and reflects the institution’s commitment to proactively managing its balance sheet by diversifying funding sources and extending the average debt maturity profile of the Group.
“We remain grateful for the support and partnership from 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, which acted as Co-manager; and Renaissance Capital Africa, which served as the Financial Adviser for the transaction”, he said.
