Ecobank Transnational Incorporated (ETI), the Togo-based holding company of the pan-African Ecobank Group, recently announced the closing of a USD 200 million 5-7 year syndicated debt facility with FMO, the Dutch development bank. A syndicated loan means a group of banks giving a loan to a single borrower. This is the second syndicated loan facility for the Ecobank Group arranged by FMO in recent years.
Parties to the transaction
FMO arranged the syndication and kept a stake of USD 58.5 million for its own account with other DFIs and impact investors providing contributions as follows: DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH (EUR 21 mln), Proparco (EUR 21 mln), Belgian Investment Company for Developing Countries – BIO (USD 15 mln), Development Bank of Austria – OeEB (USD 15 mln), Blue Orchard Microfinance Fund (USD 30 mln), Symbiotics (USD 21.5 mln) and Oikocredit (USD 10 mln).
How will the funds be applied ?
ETI will use the facility to provide funding to a number of subsidiaries across its network of 36 African countries. 75 per cent of the loan facility will be directed to SME’s across various sectors of the economy.
FMO (also known as the Netherlands Development Finance Company) was founded on the 8th of July 1970 and is a public-private partnership, with 51% of our shares held by the Dutch State and 49% held by commercial banks, trade unions and other members of the private sector. FMO has a triple A rating from both Fitch and Standard & Poor’s. FMO is one of the largest bilateral private sector development banks in the world.
ETI was founded in 1988 under a private sector initiative spearheaded by the Federation of West African Chambers of Commerce and Industry, with the support of the Economic Community of West African States (ECOWAS) The bank has operations in 36 African countries and employs over 17,000 people.
ETI shares closed at N17.49 on Friday’s trading session at the Nigerian Stock Exchange (NSE). Year to date, the stock is up 71%. .