Olufemi Adeyemi 

In a strong show of investor confidence, Ecobank Transnational Incorporated (ETI) has successfully raised $125 million through the issuance of 10.125% Senior Notes due 2029, consolidating the new tranche with its earlier $400 million notes issued in October 2024. The successful transaction, finalized on May 15, 2025, signals renewed momentum in Sub-Saharan Africa’s debt capital markets and reaffirms ETI’s position as a key player in the region’s financial sector.

The issuance was oversubscribed, with peak demand reaching $235 million, allowing the bank to upsize the transaction by 25% and achieve a tighter pricing of 9.375%, coming in 37.5 basis points below initial price guidance. This pricing efficiency underscores both ETI’s credit strength and strong investor appetite for quality African debt instruments.

Strong Global Demand and Rapid Book Build

The notes attracted robust participation from a diversified pool of investors—including global banks, fund managers, and development finance institutions—from Africa, the UK, and Europe. The order book opened with Initial Pricing Thoughts (IPTs) at 9.725%, and within just an hour, demand had covered the book, prompting a tightening of guidance to 9.500% by midday. Final pricing was settled at 9.375%, reflecting high investor confidence and dynamic order flow.

The transaction followed a well-structured roadshow and investor engagement campaign, initiated with an announcement on April 14, 2025, and supported by a series of targeted investor calls. These efforts were led by Renaissance Capital Africa, which acted as the sole arranger and played a pivotal role in crafting the investor narrative and leveraging its global distribution platform.

A Milestone for Sub-Saharan Debt Markets

ETI’s issuance marks the first public Eurobond offering by a Sub-Saharan African bank since the recent reopening of capital markets after a period of volatility. Its success demonstrates the resilience of African financial institutions and a growing appetite for high-yield, high-quality African credits among international investors.

"This transaction is a clear signal that the market has confidence in Ecobank’s fundamentals and the broader African banking sector," a Renaissance Capital spokesperson noted. "It also illustrates the strength of Renaissance’s platform in delivering seamless execution for complex cross-border deals."

Strong Financial Footing and Market Presence

Ecobank, a leading pan-African banking group with operations in 35 countries, has consistently demonstrated financial stability and growth. In the first quarter of 2025, the bank reported a 2% year-on-year increase in Net Interest Income (NII) to $295 million, while maintaining a 25.2% Non-Interest Revenue (NIR) ratio—a key metric for operational efficiency and diversified income generation.

Since its debut Eurobond issuance in 2019, ETI has now raised a cumulative $1.4 billion, reflecting both sustained investor interest and the bank’s ability to navigate international capital markets effectively.

Looking Ahead

As African economies continue to rebound and capital markets re-engage with the continent, ETI’s latest issuance could pave the way for more activity from other regional lenders. For ETI, the proceeds are expected to support general corporate purposes, further strengthening its pan-African footprint and capital position.

This successful offering stands as a bellwether for the region’s financial health, reaffirming Ecobank’s role not just as a banking leader, but as a key voice in Africa’s economic resurgence.