Following its successful $500 million Eurobond issuance, Ecobank Transnational Incorporated (ETI), was hosted by the London Stock Exchange (LSE) to a market opening ceremony to celebrate the successful listing of the Eurobond on the LSE main market
The bond was oversubscribed with strong demand from international investors in the U.K., United States, Europe, Middle East, Asia and Africa.
This follows on from Ecobank’s 2017 convertible bond issuance on the International Securities Market.
The five-year senior unsecured notes, which mature in April 2024, were launched with a coupon interest rate of 9.50% per annum payable semi-annually in arrears.
Ade Ayeyemi, Group CEO of Ecobank said, “The successful issuance of our inaugural Eurobond on the main London market demonstrates international investors’ approval and confidence in Ecobank’s long-term strategy and prospects as a strong and sustainable pan-African financial services institution.
“It also demonstrates the ability of African corporates to access international capital markets,” he added.
Acting Group CFO of Ecobank, Ayo Adepoju, noted, “Ecobank places great emphasis on constantly reviewing our capital allocation strategies to ensure that we have the right strategic positioning, competitive advantages, products and resources to increase efficiency and profitability.
“Our access to international capital markets are part of the mix and enable us to boost our liquidity profile, refinance maturing facilities and strengthen our foundations to ensure long-term sustainable growth and profitability for all our stakeholders.”
ETI, the Lomé-based parent company of the Ecobank Group, will use the net proceeds of the placement for general corporate purposes including the refinancing of maturing debt facilities.
Members of the ETI board and management attended the London Stock Exchange on 7 June to celebrate the successful issuance of the bond.