By Chukwuma Umeorah
Ecobank Transnational Incorporated (ETI) has announced the successful issuance of its $400 million notes at a coupon rate of 10.125 per cent, due October 15, 2029. The interest on the notes will be paid semi-annually, with the first payment scheduled for April 15, 2025 and subsequent payments on April 15 and October 15 each year.
The proceeds from this bond issuance will be allocated for general corporate purposes, including the refinancing of the $350 million Senior Bridge-to-Bond Loan Facility that was established in March 2024.
This marks ETI’s third venture into the international bond markets and stands as the first public Eurobond issuance by a financial institution in Sub-Saharan Africa since 2021.
“The transaction was well-received with solid demand from International and African investors, achieving a final orderbook oversubscription rate, reflecting the trust and confidence investors have in Ecobank’s Growth Transformation and Returns Strategy,” the bank said.
Ecobank further expressed appreciation for the support of its partners, including Absa, Africa Finance Corporation, African Export-Import Bank, Mashreq, and Standard Chartered Bank, who acted as joint lead managers and joint bookrunners, as well as Renaissance Capital Africa, which served as financial adviser for the transaction.
“We deeply value and appreciate the strong support from our Development Finance Institution partners, including the Africa Finance Corporation, PROPARCO, and the Eastern and Southern African Trade and Development Bank, who helped anchor the transaction,” the bank said.