Ecobank Transnational Incorporated (ETI), the parent company of Ecobank Group, has successfully secured an additional $50 million in Eurobonds. The bonds will be due in April 2024.
This tap issuance was launched as a RegS 5-year USD denominated senior unsecured bond offering. It was oversubscribed by over 4.6 times.
The issue price is 104.915% of the principal amount, thereby reflecting a yield of 8.25%. This is a solid improvement from the yield of 9.75% for the initial issue.
How the bonds will be deployed: The proceeds will be used for ETI’s general corporate purposes. Part of the proceeds will also be used to further strengthen the liquidity of ETI.
This is in line with ETI’s strategic objectives to proactively manage its balance sheet in order to diversify funding sources and extend the average debt maturity profile.
The Bonds have been placed with a broad range of institutional debt investors across
Europe and Africa. According to a statement by ETI, Standard and Poor’s and Fitch have both confirmed credit ratings of B and B- Stable respectively to this tap issue, in line with ETI’s corporate rating.
Reacting to the development, the Group Chief Executive Officer (CEO) of ETI, Ade Ayeyemi stated the following:
“As investor appetite deepens for emerging market offerings, we are positioned to offer the value that global investors seek. Our ability to open Africa to the world makes us a compelling choice. We appreciate the trust vested in us in continuing to build a strong independent African institution; a force for economic development in all of our operating markets.”
About the company: Incorporated in Lome, Togo in 1985, Ecobank Transnational Incorporated is the parent company of the leading independent pan-African banking group, Ecobank. It currently has a presence in 36 African countries and has over 850 branches and offices.
Ecobank is a full-service bank providing wholesale, retail, investment, and transaction banking services and products to governments, financial institutions, multinationals, international organizations, medium, small and micro businesses, and individuals.