A leading investor in financial institutions in Sub-Saharan Africa, Arise B.V. has made US$75 million perpetual non-cumulative AT1 capital investment in Ecobank Transnational Incorporated.
In a statement signed by Adenike Laoye, the Group Head of Corporate Communications, Ecobank, the fund will help optimise and improve ETI’s Tier 1 capital.
“This Basel III compliant instrument is the first AT1 instrument issued by ETI and a landmark transaction in the sub-Saharan Africa region. The investment will optimize and improve ETI’s Tier 1 capital by US$75 million,” the bank stated.
The latest investment showed Arise, an existing shareholder of Ecobank, has confidence in the bank’s future given the series of support and commitment the leading equity investor has provided to Ecobank in recent years.
Speaking on the new investment, Ade Ayeyemi, Group Chief Executive Officer of ETI, stated: “This investment by Arise is a testament to continued support and confidence from our shareholders; their commitment to, and belief in our strategy which we remain focused on executing to deliver value to our shareholders and excellence to our customers. Indeed, in addition to improving our double leverage ratio, it is also a good boost for the firm and its staff”.
Deepak Malik, Chief Executive Officer of Arise stated: “ETI is our primary banking investment in Francophone West Africa and Anglophone West Africa. We are very supportive of ETI’s growth ambitions and its ability to increase financial services to Agri, SMEs & retail customers. Our investment will also strengthen the balance sheet of ETI and provide additional risk capital”.