Ecobank Proposes $300m Fixed Rate Tier 2 Notes

In pursuant of the United States Securities and Exchange Commission Rule 144A and Regulation, Ecobank Transnational Incorporated (ETI), the parent company of the Ecobank Group, has announced the proposed launch of $300 Million Fixed Rate Reset Tier 2 Sustainability Notes

The Bank said the proceeds of the Notes would be used to finance or re-finance, in part or in full, new or existing eligible assets in accordance with ETI’s Sustainable Finance Framework.

Adenike Laoye, it’s Group Head, Corporate Communications, on Monday said the bank would list the Notes on the London Stock Exchange.

“Ecobank Transnational Incorporated (“ETI”), the parent company of the Ecobank Group, the leading Pan-African banking group with banking operations in 33 countries hereby notifies the Nigerian Exchange Limited, the Ghana Stock Exchange and the Bourse Régionale des
Valeurs Mobilières (the “Stock Exchanges”) that it is seeking to raise US$300 Million from the
international debt capital markets through the issuance of Tier 2 qualifying Sustainability Notes
pursuant to the United States Securities and Exchange Commission Rule 144A and Regulation S (the
“Notes”).

“An equivalent amount of the net proceeds of the Notes will be used to finance or re-finance, in part or
in full, new or existing eligible assets in accordance with ETI’s Sustainable Finance Framework.
In view of the foregoing, ETI is pleased to notify the Stock Exchanges of the proposed launch of the Notes. ETI intends to list the Notes on the London Stock Exchange, with the expectation that the Notes will be traded on its regulated market.

“It should be noted that the issuance of the Notes (the “Transaction”) is subject to prevailing market conditions and the conclusion of the necessary Transaction.”

In February 2021, the lender announced the successful pricing of $300 million bond issuance maturing in February 2026, with settlement of the bond to take place on 16 February 2021.

Ecobank stated that, “The fixed-rate, US dollar-denominated bond, with a tenor of 5 years, carries a coupon rate of 7.125 per cent and will be listed on the London Stock Exchange. It is accompanied by an Issuer Rating of B- from Fitch Rating Agency and S & P. The coupon / yield represents the lowest ever coupon / yield achieved by a Nigerian financial institution for a benchmark bond transaction.”

According to Ecobank,” the peak of marketing the transaction, the issue was over 3 times oversubscribed, with significant interest from international investors . The transaction opened with Initial Price Thoughts (‘IPT’s’) of 7.75 per cent and finally tightened to close at 7.125 per cent on the back of robust demand. The strength and depth of the book demonstrated global investors’ strong appetite for the Ecobank franchise in Nigeria, a testament to the strength of the Ecobank Group. This transaction is the first non-sovereign bond from Africa in 2021 and is a milestone capital raise for the banking sector in Nigeria, giving Ecobank access to global debt capital markets, and more favorable credit terms, commensurate with its strong financial position and robust capital structure. For international investors, it represented an attractive option to gain exposure to Nigeria.”