The London Stock Exchange (LSE) played host to Ecobank Transnational Incorporated (ETI) today, June 7, 2019, after a successful listing of the company’s Eurobond on the LSE‘s main market.
ETI, the Togo-based parent company of the Ecobank Group, was invited to celebrate the $500 million Eurobond issuance which was oversubscribed with strong demand from international investors.
The latest Eurobond follows Ecobank’s previous convertible bond issuance on the International Securities Market in 2017, the company said in a statement seen by Nairametrics.
Today #Ecobank is proud to announce its successful $500 million Eurobond issuance on the London Stock Exchange – the first debt sale on the @LSEGplc main market from a lender listed on the Nigerian stock exchange since October 2017. pic.twitter.com/zt0iidCRxq
— Ecobank Group (@GroupEcobank) June 7, 2019
Why Ecobank raised fund: The company will use the net proceeds of the placement for general corporate purposes including the refinancing of maturing debt facilities.
What you need to know: The listed Eurobond received strong demand from the United Kingdom, United States, Europe, the Middle East, Asia, and Africa. The five-year senior unsecured notes, which mature in April 2024, were launched with a coupon interest rate of 9.50 percent per annum payable semi-annually in arrears.
What this means: The Group Chief Executive Officer, Ade Ayeyemi of Ecobank said the successful issuance demonstrates international investors interest in Ecobank’s prospect and confidence in its long-term strategy.
Today’s Eurobond issuance demonstrates “international investors’ confidence in Ecobank’s prospects as a strong and sustainable pan-African financial services institution,” says #Ecobank's Group CEO Ade Ayeyemi at this morning’s @LSEGplc market opening. pic.twitter.com/vegCKLZAUr
— Ecobank Group (@GroupEcobank) June 7, 2019
“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.” Ayeyemi said.
While the Acting Group Chief Finance Officer of Ecobank, Ayo Adepoju, said the company’s access to international capital markets enables Ecobank to boost its liquidity profile.
“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.
“Our access to international capital markets are part of the mix and enable us to boost our liquidity profile, refinance maturing facilities and strengthen our foundations to ensure long-term sustainable growth and profitability for all our stakeholders.”
Members of the ETI board and management were also present at the celebration.
