Ecobank Secures $400m Eurobond to drive Africa’s growth and transformation
ECOBANK Transnational Incorporated (ETI), the parent company of the leading pan-African Ecobank Group, marked a significant milestone by opening the market at the London Stock Exchange (LSE).
The ceremony celebrated the successful issuance of ETI’s $400 million Senior Unsecured Eurobond, which is listed on the LSE’s main market.
The Notes, which mature in October 2029, carry an interest rate of 10.125%, payable semi-annually. This marks ETI’s third venture into the international bond markets and the first public Eurobond issuance by a financial institution in sub-Saharan Africa since 2021.
Strong Investor Confidence
The issuance was more than 2.1 times oversubscribed, reflecting robust demand from both international and African investors. Jeremy Awori, CEO of Ecobank Group, highlighted the significance of the achievement, stating:
“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 strong demand showcases investor trust in our Growth, Transformation, and Returns Strategy.”
Collaborative Effort
Ayo Adepoju, Chief Financial Officer of Ecobank Group, expressed gratitude to the financial institutions and Development Finance Institution (DFI) partners that facilitated the transaction.
These included Absa, Africa Finance Corporation, African Export-Import Bank, Mashreq, and Standard Chartered Bank, who acted as Joint Lead Managers and Joint Bookrunners. Renaissance Capital Africa served as the Financial Adviser.
Adepoju also acknowledged the critical role of DFIs such as Proparco, the Eastern and Southern African Trade and Development Bank, and Africa Finance Corporation in anchoring the transaction.
“We deeply value the support from our partners and investors and look forward to continuing our collaboration to execute our business strategy,” he said.
Purpose of the Issuance
The net proceeds from the Eurobond will be used for general corporate purposes, including refinancing a $350 million Senior Bridge-to-Bond Loan Facility secured in March 2024.
A Pan-African Success Story
Members of ETI’s board and management participated in the market-opening ceremony at the London Stock Exchange, underscoring the significance of the achievement. This landmark issuance cements Ecobank’s position as a leader in leveraging global capital markets to drive growth and transformation across Africa.
The successful bond issuance not only reinforces confidence in Ecobank’s strategic direction but also serves as a testament to the growing investor appetite for African financial institutions’ offerings on the global stage.
