Ecobank Transnational Incorporated has bolstered its liquidity reserves with the successful acquisition of a $250 million loan facility, according to the bank’s Group Chief Financial Officer, Ayo Adepoju.
The facility documented in a statement filed with the Nigerian Exchange Limited represents a crucial step in fortifying the bank’s financial position amidst evolving economic landscapes.
Led by the African Export–Import Bank (Afreximbank) and the Africa Finance Corporation (AFC), the senior bridge-to-bond loan facility aims to support both trade activities and general corporate functions within the Ecobank group.
This strategic move underscores the bank’s commitment to sustaining operational vitality and enhancing financial stability, particularly in the face of challenging market conditions.
Adepoju expressed enthusiasm about the new facility, emphasizing its pivotal role in augmenting the bank’s liquidity buffers.
He attributed the accomplishment to Ecobank’s robust relationships and steadfast credibility established over recent years, reflecting the institution’s resilience and adaptability in navigating dynamic financial terrains.
The structure of the facility involves Afreximbank and AFC serving as global coordinators and initial mandated lead arrangers, with Mashreqbank psc. joining as a mandated lead arranger.
The loan has a tenure of 12 months, inclusive of a provision for a six-month extension at the lenders’ discretion.
Furthermore, an accordion feature allows for potential increases in total commitments within a specified timeframe, amplifying the flexibility and scalability of the financing arrangement.
This development follows Ecobank’s earlier acquisition of a $200 million loan in December, designated to fuel sustainability and climate strategies—a testament to the bank’s proactive engagement in fostering environmental responsibility and economic resilience.
As the financial landscape evolves, Ecobank’s strategic initiatives underscore its commitment to navigating uncertainties while fortifying its position as a leading pan-African banking institution.
