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Ecobank Sells $450m Eurobonds to Refinance Debts

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  • Ecobank Sells $450m Eurobonds to Refinance Debts

Pan-African financial institution headquartered in Lome, Togo, Ecobank Transnational Incorporated, has issued Eurobonds valued at $450 million to investors.

Its proceeds are expected to be used by the bank to meet its general corporate obligations, including the refinancing of a portion of debt it owes banks.

One of the arrangers of the bond sale, Renaissance Capital, disclosed in a statement that Ecobank sold the Eurobonds yesterday 9.75 per cent.

Ecobank trades its shares on the floor of the Nigerian Stock Exchange (NSE).

The bond sale is the first from a publicly quoted bank on the Nigerian bourse in over a year.

The last by a Nigerian-listed bank was the $400 million Eurobonds issued by Fidelity Bank Plc in October 2017. The Fidelity Bank five-year paper was sold at 10.75 percent, but the price on those notes has since risen, sending the yield down to about 8.8 percent.

According to Bloomberg yesterday, the Ecobank five-year senior unsecured notes yields rank among the highest from emerging markets in 2019.

The transaction lured strong demand from development banks and financial institutions, Samuel Sule, director of the financing group at RenCap, said in the statement.

The other arrangers were Deutsche Bank AG, Standard Bank Group Ltd and Standard Chartered Plc.

The yields are about the juiciest since Ecuador sold $1 billion of 10-year sovereign debt at 10.75 per cent in January, according to data compiled by Bloomberg.

Yields on those securities have dropped to nine per cent as sentiment toward emerging markets improved and the government secured a $4.2 billion loan package from the International Monetary Fund.

Ecobank raised $200 million in loans last year which are due for repayment in November. Many lenders in its biggest market of Nigeria are looking to raise funding to finance their operations or increase capital reserves after a 2016 recession triggered a surge in non-performing loans and stricter accounting rules increased impairments.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market.

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Mohammed Umar is the New Acting Chairman of EFCC

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Buhari Appoints Mohammed Umar as EFCC Acting Chairman

President Muhammadu Buhari has appointed, Mohammed Umar, the director of operations at the Economic and Financial Crimes Commission (EFCC), as the new Acting Chairman of the agency, according to the NAN.

A top official of the commission confirmed to NAN that Umar has taken charge of the agency following the suspension of Ibrahim Magu, the former acting Chairman.

Ibrahim Magu was suspended by the President on Tuesday following series of allegations bordering on frauds, financial misappropriations and abuse of power.

 

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CBN Spends $11.5bn in Q1 2020 to Support the Economy and Dwindling Naira

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CBN Injects $11.5bn Into the Economy in the First Quarter

The Central Bank of Nigeria (CBN) injected a combined $11.5 billion into the nation’s foreign exchange market to stabilise the economy and support the Naira value in the first quarter of the year.

According to the latest report from the apex bank, the central bank injected $2.96 billion into the nation’s forex market in the month of January. Another $3.39 billion was used to support the economy in February while $4.7 billion was supplied in the month of March, the very month the economy was locked and all operations grounded to curb the spread of COVID-19.

A further breakdown of the report revealed that the Investors and Exporters’ foreign exchange window, Small and Medium enterprises and Invisible segments received a total of $7.23 billion of the $11.5 billion, the Bureau De Change segment received $3.6 billion while the Interbank and WDAS/RDAS got the rest in the first quarter.

The report noted that the apex bank injected a total sum of $14.72 billion and $28.55 billion into the economy in 2018 and 2019, respectively.

Meanwhile, the central bank is yet to commence the sales of forex to the bureau de change following the March suspension.

But has commenced partial sales to all commercial banks for onward sales to parents and small businesses across the country.

Mr Isaac Okorafor, the Director, Corporate Communications, CBN, had said, “The CBN has also made complete arrangements to resume foreign exchange sales to the BDC segment of the market for business travels, personal travels and other designated retail uses, as soon as international flights resume.”

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DSS Arrests EFCC, Acting Chairman, Magu

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Dss Arrests Ibrahim Magu

DSS Arrested Magu, the Acting Chairman of EFCC

The Department of State Services (DSS) has arrested the acting chairman of the Economic and Financial Crimes Commission (EFCC), Ibrahim Magu, on allegation bordering on financial misappropriation, abuse of power and embesslement.

The Acting Chairman was accused of siphoning part of the money recovered from looters, a Punch reported stated.

The report stated “It was learnt that the security details to Magu put up a stiff resistance during the arrest of their principal, as they objected to the DSS move.

But he is now undergoing interrogation at the DSS Headquarters In Aso Drive.

This is happening barely two weeks after the Attorney-General of the Federation, Abubakar Malami (SAN) reportedly complained to the President, Major General Muhammadu Buhari (retd.) about Magu’s conduct and advised that he should be relieved of his appointment.

The AGF was said to have accused Magu of insubordination and discrepancies in the figures of funds recovered by the EFCC.

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