Ecobank Transnational Incorporated (ETI) has received shareholder authorization to raise up to $250 million in Additional Tier 1 (AT1) capital qualifying instruments, following a resolution passed at the company’s Extraordinary General Meeting (EGM).
This development comes on the heels of ETI’s successful issuance of $125 million in 10.125% Senior Notes due in 2029.
The latest notes, issued on May 15, 2025, will be consolidated with the earlier $400 million Senior Notes issued on October 15, 2024, which bear the same interest rate and maturity date.
Shareholders Granted Tiered Subscription Access
In a statement signed by Company Secretary Madibinet Cissé and filed with the Nigerian Exchange Group (NGX) on Thursday, June 26, ETI disclosed that the upcoming AT1 instruments will be available for subscription on a tiered basis:
- First priority will be granted to a maximum of 100 shareholders, allocated on a first-come, first-served basis.
- Second priority will be extended to other interested investors, subject to availability.
Regarding pricing mechanics, ETI noted: “The conversion price of the AT1 instrument shall be the higher of the 5-day Volume Weighted Average Price (VWAP) on the NGX at the time of conversion—converted to U.S. dollars using the prevailing exchange rate—or a floor price of $0.01 per ordinary share.”
Market Interest Surges in Previous Debt Issuance
ETI’s earlier $125 million offering in May was met with strong investor demand. The issuance attracted a peak order book of approximately $235 million, leading the issuer to upsize the deal by 25%.
The pricing was eventually set at 9.375%, which was 37.5 basis points inside the initial pricing guidance of 9.725%.
The offering followed a round of investor engagement that began with an announcement on April 14, 2025, and included a series of investor calls aimed at strengthening confidence in the Ecobank Group’s capital structure and regional banking strategy.
The order book officially opened at 9:00 AM on May 15, 2025, and garnered significant participation from institutional investors and market participants across multiple jurisdictions.
What You Should Know
Ecobank Transnational Incorporated (ETI) is a leading Pan-African banking franchise with a presence across 35 African countries.
- The company’s Net Interest Income (NII) increased by 2% year-on-year to US$295M in the first quarter of 2025, with its Non-Interest Revenue (NIR) ratio standing at 25.2% for the period.
- With a strong shareholder base, the bank has successfully raised US$1.4bn in Eurobonds since its debut offering in 2019.
