Ecobank Transnational Incorporated (ETI), the parent company of the Ecobank Group, has raised an additional $125 million through a Eurobond tap, increasing the total size of its 2029 notes to $525 million.
The pan-African financial institution announced the successful tap on Tuesday via a disclosure on the Nigerian Exchange Limited. The tap was issued at a premium price of 102.634, reflecting a yield of 9.375%, which is 100 basis points lower than the 10.125% yield at which the original $400 million notes were issued in October 2024.
This new issuance is part of the bank’s existing U.S. dollar-denominated five-year notes due in October 2029, and both will now form a single bond series.
According to the Group, investor demand was strong, resulting in an oversubscription of over two times, driven by broad interest from institutional investors including asset managers, banks, and development finance institutions across Africa, the UK, Europe, the US, Asia, and the Middle East.
Proceeds from the issuance will be used for general corporate purposes, with a focus on refinancing maturing debt. This will enhance Ecobank’s liquidity position and increase its financial flexibility.
Commenting on the development, Group CEO Jeremy Awori said:
“We are encouraged by the strong support received from international investors, which underscores their continued belief in Ecobank’s resilience and progress in executing our Growth, Transformation and Returns strategy.”
He added that the transaction boosts the bank’s financial flexibility and reinforces its presence in global capital markets.
Group CFO Ayo Adepoju also noted that the tap supports Ecobank’s strategy to diversify funding and extend the average debt maturity profile.
“This successful tap reflects our commitment to proactively managing our balance sheet,” he said.
Adepoju expressed appreciation to the consortium of financial institutions involved in the deal. Joint Lead Managers and Bookrunners included Absa, Africa Finance Corporation, African Export-Import Bank, Mashreq, and Standard Chartered Bank. Ecobank Development Corporation acted as co-manager, while Renaissance Capital Africa served as financial adviser.
Ecobank recently reported a profit after tax of N735.9 billion for 2024, representing a 179% increase from N263.5 billion in 2023, underscoring the bank’s continued financial growth.
