Ecobank Trans International has announced the successful placement of $400 million convertible debt.
The convertible debt was structured in three tranches: The first, a convertible loan facility of $250 million was arranged through Public Investment Corporation (PIC) of South Africa, an institutional holder.
The second tranche consisting of $140 million convertible notes was fully subscribed to by Quatar national Bank (QNB), also an institutional shareholder.
The third tranche comprising $10 million convertible notes was reserved for shareholders other than the who pariticiapated to the tune f $1.11 million. The remaining balance was subscribed buy QNB , bringing QNB’s participation in both tranches to $148.9 million.
The second and third tranches amounting to $150 million have been listed on the International Securities Market (ISM) of the London Stock Exchange.
The convertible debt due 2022 will have a coupon, reset semi-annually, equal to 3-month USD LIBOR plus 6.46% per ammum, payable semi-annually in arrears. The debt will be convertible at the option of the holder of the convertible debt who is also an ETI shareholder into ETI ordinary shares at an exercise price of 6 US cents during the conversion period of 19 October 2019 to 13 October 2022 upon the occurrence of a change of control in accordance with the terms of the convertible debt.
The debt will be redeemed at 110% of principal amount if the conversion option is not exercised.
Here is a copy of the notice.