Ecobank to refinance loans with $500m Eurobond proceeds

Following its successful $500 million Eurobond issuance last week at the London Stock Exchange (LSE), Ecobank Transnational Incorporated (‘ETI’), the Lomé-based parent company of the Ecobank Group has said the proceeds of the note would be used to refinance its maturing debt facilities

This was disclosed by the company in a statement  while being hosted by LSE to a market opening ceremony to celebrate the successful listing of the Eurobond on the Exchange main market.

According to the statement, the bond was oversubscribed with strong demand from international investors in the United Kingdom, United States, Europe, Middle East, Asia and Africa, adding that the issuance is a follow up to the 2017 convertible bond issuance on the International Securities Market.

The five-year senior unsecured notes, which mature in April 2024, were launched with a coupon interest rate of 9.50 per cent per annum payable semi-annually in arrears.

Commenting on the recent issue, its Group CEO, Ade Ayeyemi, said:

“The successful issuance of our inaugural Eurobond on the main London market demonstrates international investors’ approval and confidence in Ecobank’s long-term strategy and prospects as a strong and sustainable pan-African financial services institution.

“It also demonstrates the ability of African corporates to access international capital markets.”

Ayo Adepoju, the acting Group Chief Financial Officer of Ecobank stated that “Ecobank places great emphasis on constantly reviewing our capital allocation strategies to ensure that we have the right strategic positioning, competitive advantages, products and resources to increase efficiency and profitability. Our access to international capital markets are part of the mix and enable us to boost our liquidity profile, refinance maturing facilities and strengthen our foundations to ensure long-term sustainable growth and profitability for all our stakeholders.”

The proceeds have been penciled down to be expended on the placement for general corporate purposes including the refinancing of maturing debt facilities.