Ecobank Transnational Incorporated successfully closes $125m Eurobond 

Ecobank Transnational Incorporated (ETI) on Tuesday announced the successful tap of its $400 million 10.125% Notes due 15 October 2029 for an additional $125 million. 

The Notes will be consolidated and will form a single series with the U.S.$400 million 10.125% Notes issued on 15 October 2024. 

The offering was issued at a premium with a new issue price of 102.634, or an effective yield of 9.375%, representing a 100-basis-point tightening in yield compared to the original issue. 

The improved yield demonstrates investor confidence in Ecobank’s strategy execution and growth prospects. Investor demand was also robust, achieving a final orderbook oversubscription rate of more than 2x, with strong participation from asset managers, banks, and development finance institutions across Africa, the United Kingdom, Europe, the United States, Asia, and the Middle East. 

The net proceeds from the issuance of the Notes will be used for general corporate purposes primarily to refinance upcoming debt maturities. 

Group CEO, ETI, Jeremy Awori in a  statement said: “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 (GTR) strategy. This tap enhances our financial flexibility and further reinforces our presence in the global capital markets.” 

Group Chief Financial Officer of ETI, Ayo Adepoju, added: “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. 

“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”.  

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