ETI Successfully Raised $450m Via Its Debut Eurobond

Ecobank Transnational Incorporated, (ETI), the parent company of the Ecobank Group, said it has successfully raised $450 million in its debut Eurobond which was oversubscribed.
Group chief financial officer of ETI, Greg Davis, in a signed press statement said that “The Global Offering is a five-year unsecured note (144A/RegS) listed on the main market of the London Stock Exchange. The bond matures in April 2024 and was issued with a coupon pricing of 9.5 per cent with interest payable semi-annually in arrears.”

It stated that the proceeds will be used for ETl’s general corporate purposes and to refinance existing holding company (Hodco) obligations, saying that investor interest was global, including United Kingdom, United States, Europe, the Middle East, Asia, and Africa.
On this debut Eurobond issuance, group chief executive officer of ETI, Mr. Ade Ayeyemi, stated, “This is another first for Ecobank and I am very excited at the prospects for the Group as we continue the second phase of our five-year ‘Roadmap to leadership’ strategy.
“Our efforts toward greater operational and capital efficiency are paying off, and this offer is another example of the measures we are taking to strengthen our institution and deliver value for all of our stakeholders.”

Also, speaking on the Eurobond, Davis, said, “The success of this Eurobond reflects appetite from high quality and real money institutional investors globally and the trust that continues to be conferred on our institution and the markets we have chosen to participate in.”
The company in its financial results for the year ended December 31, 2018 posted profit after tax of N102.2 billion, by 46 per cent from 69.7 billion in 2017. Gross earnings was up by one per cent N773.3 billion from N763.63 billion, while operating profit before impairment losses up by two per cent N218.4 billion as against N214.28 billion.

ETI said that after due consideration of the impending regulatory capital requirements across the Group, and the need to build the company’s liquidity buffer, the directors do not recommend the payment of dividends for 2018.
Ayeni said that “Overall, we are excited about the prospects for the firm and for Africa. Yes, risks remain, and economic cycles come and go, but we will remain steadfast in serving our customers well. I am proud of the work that Ecobankers have done in the last three years to stabilise the firm and position it for long-term success.”

April 19, 2019