Ecobank Celebrates Successful $400 Million Eurobond Issuance on London Stock Exchange

Ecobank Transnational Incorporated (ETI), the parent company of the leading pan-African financial institution, Ecobank Group, has marked a significant milestone by opening the London Stock Exchange (LSE) market.

The event was to celebrate the successful issuance of its $400 million Senior Unsecured Eurobond on the LSE’s main market.

The $400 million Notes, which mature in October 2029, were issued at an interest rate of 10.125%, payable semi-annually in arrears.

According to a statement issued by ETI, the net proceeds from this issuance will be utilised for general corporate purposes, including the refinancing of a $350 million Senior Bridge-to-Bond Loan Facility that was secured in March 2024.

Jeremy Awori, CEO of Ecobank Group, highlighted the significance of this achievement, noting that it underscores the institution’s innovative leadership in accessing international capital markets.

“Our successful Notes issuance demonstrates how Ecobank is blazing the trail for sub-Saharan African financial institutions and corporates in accessing the international capital markets,” said Awori.

“With the bond more than 2.1 times oversubscribed, the strong demand demonstrates international and African investors’ approval and trust in the progress of our Growth, Transformation, and Returns Strategy,” he added.

This issuance represents ETI’s third foray into the international bond market and is notable as the first public Eurobond issued by a financial institution in sub-Saharan Africa since 2021.

Ayo Adepoju, Chief Financial Officer of Ecobank Group, extended gratitude to the financial and institutional partners who played key roles in the successful issuance.

“We deeply value and appreciate the strong support from our Development Finance Institution partners, including the Africa Finance Corporation, Proparco, and the Eastern and Southern African Trade and Development Bank, who helped anchor the transaction,” said Adepoju.

He also recognised the contributions of Joint Lead Managers and Bookrunners, including Absa, Africa Finance Corporation, African Export-Import Bank, Mashreq, and Standard Chartered Bank, as well as Renaissance Capital Africa, which served as the Financial Adviser.

The issuance of the Notes not only reinforces ETI’s financial standing but also serves as a benchmark for other sub-Saharan African institutions seeking to access international capital markets.

With strong investor confidence, evidenced by the oversubscription of the bond, Ecobank continues to position itself as a leading player in the region’s financial sector.

This successful transaction is poised to further accelerate the execution of ETI’s corporate strategy, which centres on growth, transformation, and improved returns for stakeholders.