Following the US$500mn Eurobond issuance, Ecobank Transnational Incorporated (ETI), Lomé-based parent company of the Ecobank Group, has celebrated the listing of the Eurobond on the London Stock Exchange (LSE) main market
The bond was oversubscribed with strong demand from international investors in the UK, the USA, Europe, the Middle East, Asia and Africa. It follows on from Ecobank’s 2017 convertible bond issuance on the International Securities Market.
The five-year senior unsecured notes, which mature in April 2024, were launched with a coupon interest rate of 9.50 per cent per annum payable semi-annually in arrears.
Ade Ayeyemi, group CEO of Ecobank, said, “The successful issuance of our inaugural Eurobond on the main London market demonstrates international investors’ approval and confidence in Ecobank’s long-term strategy and prospects as a strong and sustainable pan-African financial services institution. It also demonstrates the ability of African corporates to access international capital markets.”
Ayo Adepoju, acting group chief financial officer of Ecobank, commented, “Ecobank places great emphasis on constantly reviewing our capital allocation strategies to ensure that we have the right strategic positioning, competitive advantages, products and resources to increase efficiency and profitability.”
ETI will use the net proceeds of the placement for general corporate purposes including the refinancing of maturing debt facilities.
Members of the ETI board and management attended the London Stock Exchange on 7 June to celebrate the successful issuance of the bond.
