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Ecobank Transnational Incorporated (ETI) has reportedly issued a US$400 million Senior Unsecured Eurobond on the London Stock Exchange, marking a significant milestone for the company and the sub-Saharan African financial sector.
The issuance is reportedly the first public Eurobond issuance by a financial institution in sub-Saharan Africa since 2021.
ETI, the parent company of Ecobank Group, would reportedly use the net proceeds from the bond for general corporate purposes, including refinancing a US$350 million Senior Bridge-to-Bond Loan Facility secured in March 2024.
According to a statement issued by Ecobank Zambia’s Head of Marketing and Corporate Communications, Glenda Kamalata, the bond notes mature in October 2029 and carry an interest rate of 10.125 percent, payable semi-annually in arrears.
Jeremy Awori, CEO of Ecobank Group, reportedly stated that the success of the issuance demonstrates Ecobank’s leadership in opening access to international capital markets for sub-Saharan African financial institutions.
Ayo Adepoju, CFO of Ecobank Group, expressed appreciation for the partnership with financial institutions such as Absa, Africa Finance Corporation, African Export-Import Bank, Mashreq, and Standard Chartered Bank, which served as Joint Lead Managers and Joint Bookrunners.
Renaissance Capital Africa acted as the Financial Adviser for the transaction.
“We also thank our bond investors for their ongoing support of ETI and look forward to continuing our engagement and working together to successfully execute our business strategy,” Adepoju said.
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