Ecobank lands $250 Million bridge-to-bond loan from Afreximbank and AFC

Joy Agwunobi

Ecobank Transnational Incorporated (ETI), one of Africa’s leading banking groups, has secured a $250 million loan from the African Export-Import Bank (Afreximbank) and Africa Finance Corporation (AFC), to support the trade finance and general corporate activities of the group. 

The loan, which is an unsecured bridge- to- bond will provide liquidity and flexibility to ETI, enabling it to pursue its strategic objectives. 

Afreximbank and AFC played a critical role in arranging this $250 million loan facility, serving as global coordinators and initial mandated lead arrangers. Mashreqbank psc. also played an important role in the transaction, serving as a mandated lead arranger.

The $250 million loan facility has a term of 12 months, with the possibility of extending it by an additional six months if the lenders approve. In addition, the facility has an “accordion” feature that allows the total commitments to be increased within a given timeframe, providing additional flexibility for ETI. 

Ayo Adepoju,Ecobank’s chief financial officer, applauded the new facility, noting that it will enhance the bank’s liquidity position and further diversify its funding sources. According to Adepoju, the strong market support for Ecobank, particularly its ability to raise funds during challenging economic conditions, is a reflection of the bank’s financial strength and credibility.

 Adepoju also expressed his gratitude to the teams that worked on the facility and to the lead arrangers for their commitment and support.