Ecobank Transnational Incorporated (ETI) has formally launched its Tier 2 sustainability Notes, raising $350 million from the landmark issuance.
This is according to a press released signed by the firm’s Head of Corporate Communications, Adenike Laoye and seen by Nairametrics.
According to the notice, the recent deal is the first ever Tier 2 Sustainability Notes by a financial institution is Sub-Saharan Africa. The notes, which matures in June 2031, has a call option in June 2026 and was issued with a coupon rate of 8.75% with interest payable semi-annually in arrears.
The financial giants also disclosed that the Tier2 issuance is the first to have a Basel III- compliant 10NC5 structure outside of South Africa in 144A/RegS format. Sequel to this, the notes will be listed on the main market of the London Stock Exchange.
The bank also emphasized that investors’ interest in the notes were impressive, with major markets in the UK, USA, Europe, the Middle East, Asia and Africa, achieving a 3.6x oversubscribed order book, of over $1.3 billion at its peak.
Commenting on what the proceeds of the notes will be used for, the pan-African bank noted that it will be used to refinance new or existing eligible assets as described in ETI’s sustainable framework
Commenting on this deal, the Group Chief Executive Officer of ETI, Ade Ayeyemi, stated that: “This is a landmark issue for Ecobank, and indeed the success of this first Sustainable Tier 2 issuance is testament to our clear strategy, solid positioning across the pan-African banking space as well as our deliberate and long term focus on sustainable initiatives. We are particularly pleased with the diverse order book which reflects the confidence investors have in Ecobank to deliver on our commitment to sustainable financing.’’
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ETI had earlier announced the proposed launch of the Tier 2 sustainability notes, few days ago.
The Joint Lead Managers and Bookrunners in the transaction were Citi, Mashreq, Renaissance Capital and Standard Chartered Bank.