Ecobank Transnational Incorporated (ETI), has debuted the issuance of the $400 million Eurobond at the London Stock Exchange (LSE).
The financial institution opened the market today at the United Kingdom-based bourse, with members of the company’s board and management in attendance.
This is coming after the lender sold the five-year senior unsecured papers to investors at a coupon rate of 10.125 percent payable semi-annually in arrears in October.
The firm also asked for the funds for general corporate purposes, including refinancing the $350 million senior bridge-to-bond loan facility it secured in March 2024.
Speaking at the LSE, the chief executive officer (CEO) of Ecobank, Mr Jeremy Awori, said the company is setting to the path for financial institutions on the continent to connect with foreign markets.
“Our successful Notes issuance demonstrates how Ecobank is blazing the trail for sub-Saharan African financial institutions and corporates in accessing the international capital markets.
“The notes are ETI’s third issuance on the international bond markets and the first public Eurobond issuance by a financial institution in sub-Saharan Africa since 2021.
“With the bond more than 2.1 times oversubscribed, the strong demand demonstrates international and African investors’ approval and trust in the progress of our Growth, Transformation and Returns Strategy.”
On his part, the bank’s Chief Financial Officer (CFO), Mr Ayo Adepoju, said, “We really appreciate 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, and Renaissance Capital Africa, who served as the 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.
“We also thank our bond investors for their ongoing support of ETI and look forward to continuing our engagement and working together to successfully execute our business strategy.”
