Ecobank Nigeria, a subsidiary of Ecobank Transnational Incorporated (‘’ETI’’) has announced that it is seeking to raise $300 million from the international debt capital market through the issuance of senior notes.

This is contained in a disclosure signed by the Group Head, Adenike Laoye and published on the website of the Nigerian Stock Exchange (NSE).

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According to the bank, the proceeds from the Eurobond will help to provide medium-term funding for the company and also help to enhance its capacity to support international trade and service in Africa.

A part of the disclosure reads, “Ecobank Nigeria Limited (the “Bank”), a key subsidiary of Ecobank Transnational Incorporated (“ETI”) is seeking to raise capital from the international debt capital market through the issuance of US$300 million senior notes (the “Notes”), pursuant to the United States Securities and Exchange Commission Rule 144A and Regulation S (the “Transaction”).”

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What you should know

• The Notes will be listed on the London Stock Exchange through a Dutch special purposes funding vehicle.
• The bank also noted that the transaction is subject to prevailing market conditions and the conclusion of the necessary transaction documentation.
• It is important to note that Ecobank Nigeria intends to list the Notes on the London Stock Exchange, with the expectation that the Notes will be traded on its regulated market.
• Also, the Central Bank of Nigeria has confirmed that it has no objection to the Transaction, as stated in the disclosure.
• Recall that Nairametrics reported in January that Ecobank Nigeria announced that it secured a N50 billion, 10-year bilateral subordinated loan with the aim of maintaining stable liquidity and improving its balance sheet.

The Debt Management Office (DMO), on behalf of the Federal Government of Nigeria, recently offered for Subscription the February 2021 Federal Government of Nigeria Savings Bond.

This is according to a notification released on the website of the Debt Management Office on Monday.

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The latest savings bond offer comes in two tranches:

• 2-year FGN Savings Bond due February 10, 2021: 4.214% per annum
• 3-year FGN Savings Bond due February 10, 2024: 5.214% per annum
• Opening date – February 1, 2021
• Closing date – February 5, 2021
• Settlement date – February 10th, 2021
• Coupon payment dates – May 10th, August 10th, November 10th, and February 10th
• Units of sale –  N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.

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According to the circular, the offer is backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria.

What you should know

•  Recall that Nairametrics reported that DMO received a total bid of N134.056 billion in December 2020, indicating an oversubscription of N74.056 billion.
• The FGN Savings Bond is an investment product issued through the Debt Management Office (DMO) on behalf of the Federal Government.
• Interested investors were however advised to visit their website in order to get the list of stockbroking firms appointed as distribution agents.