Ecobank clears $500m Eurobond after five-year tenure

Onwubuke Melvin
Onwubuke Melvin

Ecobank Transnational Incorporated has repaid its $500 million five-year Eurobond, which was due today, April 18th.

this was disclosed by the bank in a corporate filing with the Nigerian Exchange Limited on Thursday.

The Group Chief Financial Officer, ETI, Ayo Adepoju, said the bond represented ETI’s first Eurobond issuance in April 2019, noting that the repayment serves as evidence of ETI’s robust financial standing.

He said, “The Eurobond was warmly received by a diverse group of global investors, including our esteemed long-term development partners, FMO and Proparco, who acted as anchor investors to the issuance.”

According to Adepoju, the Eurobond was listed on the main market of the London Stock Exchange with a coupon rate of 9.5 per cent.

“The principal and interest repayment, totaling $524 million, was distributed to bondholders through the transaction agent on the bond maturity date of April 18, 2024.

“This inaugural bond we are retiring today was critical in introducing our firm to a wider array of global investors and contributed to the increased visibility of our brand in the capital markets.

“When viewed against the backdrop of the difficult operating environment that characterised 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.”

ETI announced plans to sell $500 million of Eurobonds in 2019, offering yields that could be among the highest from emerging markets.

Bloomberg reports that the talk on the market has shown notes to have a yield of around 9 percent area as the bank said it would sell $500 million worth of five-year debt.

It said that a person familiar with the matter, who requested anonymity because he was not authorised to speak publicly about it, had obtained information from an institution offering five-year senior unsecured notes which could be priced at around 9 per cent.

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