Ecobank repays $500m Eurobond, boosting confidence in Africa’s banking sector

Business a.m.

Ecobank Transnational Incorporated (ETI), the parent company of the Ecobank Group, has successfully repaid its $500 million 5-year Eurobond, which matured on April 18, 2024, according to an announcement made by the company on the Nigerian Exchange Limited (NGX).

The company stated that the Eurobond, which was issued in April 2019 with a coupon rate of 9.5 per cent, received strong support from a diverse set of global investors, including development banks FMO and Proparco as anchor investors.

According to the announcement, Ecobank Transnational Incorporated demonstrated its financial prowess by successfully repaying the entire $500 million Eurobond, along with the accrued interest amounting to $24 million, on the maturity date of April 18, 2024. The noteworthy development, it explained,  was achieved through the assistance of the designated transaction agent, highlighting its aptitude in managing its debt obligations and maintaining its reputation as a creditworthy borrower in the global financial markets.

Ayo Adepoju, Ecobank’s group chief financial officer, commented on the Eurobond repayment, noting that the 2019 issuance, being ETI’s first Eurobond, was instrumental in introducing the firm to a broader range of global investors and elevating the company’s presence and brand recognition in the capital markets.

He stated: “When viewed against the backdrop of the difficult operating environment that characterized most of 2023 and is still being felt today – particularly the disruptions in the world supply chain and global financial markets – the Group continues to show resilience through strong liquidity, a robust balance sheet, and a solid leadership team.”

While the recently repaid $500 million Eurobond marked Ecobank’s debut listing on the London Stock Exchange, it was not the group’s first foray into the realm of international bond issuance.

Ecobank’s maiden bond issuance took place in 2014, when it successfully listed a $200 million bond on the Irish Stock Exchange, demonstrating its financial prowess and ability to tap into global capital markets.