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Parent Company Of Ecobank Group, ETI, Raises $350m Bond

Ecobank Bags 2021 African SME Bank Award

The parent company of Ecobank Group, Ecobank Transnational Incorporated (ETI) based in Lome, Togo’s capital, has announced that it raised $350 million Tier 2 Sustainability Notes.

This success makes it the first ever Tier 2 Sustainability Notes by a financial institution in Sub-Saharan Africa.

The disclosure was made in a statement, noting that Tier 2 issuance would be listed on the London Stock Exchange’s main market.

With a call option in June 2026, the bond has a maturity date of June 2031 and a coupon of 8.75 percent with an interest that would be paid semi-annually.

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“Investor interest for this Sophomore Eurobond issue was global, including United Kingdom, United States, Europe, the Middle East, Asia and Africa, achieving a 3.6 times oversubscribed order-book, of over $1.3 billion at its peak,” the statement read.

Adding that “The transaction was anchored at the start by Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO), a Dutch development bank, with a committed $50 million order.”

The Group’s Executive Officer, ETI, Ade Adeyemi, attributed the bank’s success to its “clear strategy” and its focus on long-term “sustainable” schemes.

Adeyemi explained, “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 orderbook which reflects the confidence investors have in Ecobank to deliver on our commitment to sustainable financing.”

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Kindness Udoh is a writer and media enthusiast with vast experience in journalism, copywriting, and features across beats. He also has professional certifications in creative writing. You can reach him via [email protected]

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