London, United Kingdom, November 20, 2024 – Ecobank Transnational Incorporated (ETI), parent company of the leading pan-African banking group Ecobank, today opened the market on the London Stock Exchange (LSE) to celebrate the successful issuance of its senior unsecured Eurobonds in the amount of 400 million US dollars on the main market of the London Stock Exchange.
Jeremy Awori, CEO of Ecobank Groupsaid: “The success of our bond issuance demonstrates how Ecobank is paving the way for access to international capital markets for financial institutions and businesses in sub-Saharan Africa. These bonds are ETI’s third issuance in international bond markets and the first public Eurobond issuance by a financial institution in sub-Saharan Africa since 2021. With the bond being oversubscribed more than 2.1 times, strong demand attests to the approval and confidence of international and African investors in the progress of our Growth, Transformation and Returns strategy”.
The bonds, which mature in October 2029, will yield interest of 10.125%, payable semi-annually in arrears.
Ayo Adepoju, financial director of the Ecobank Groupstressed: “We greatly appreciate the support and partnership of Absa, African Finance Corporation, African Export-Import Bank, Mashreq and Standard Chartered Bank, who acted as co- joint lead managers and bookrunners, as well as Renaissance Capital Africa, which acted as financial advisor on the transaction. We are very grateful to our partner development finance institutions, including the African Finance Corporation, Proparco and the Eastern and Southern African Development and Trade Bank, who helped anchor the transaction. We also thank our bond investors for their continued support of ETI. We look forward to continuing our mission and working collaboratively to deliver on our business strategy.”
ETI will use the net proceeds from the bond issuance for general corporate purposes, including the refinancing of the US$350 million credit facility in the form of a senior bridge loan closed in March 2024.
Members of ETI’s board and management were on hand at the London Stock Exchange to celebrate the successful bond issue.
To learn more about Ecobank, visit ecobank.com – ENDS –
What are the main challenges facing financial institutions in sub-Saharan Africa today?
Time.news Interview: Unlocking Opportunities in Sub-Saharan Africa’s Financial Landscape
Interviewer: Welcome, everyone, to this special edition of Time.news. I’m here with Jeremy Awori, the CEO of Ecobank Group, following their remarkable Eurobond issuance on the London Stock Exchange. Jeremy, thank you for joining us today.
Jeremy Awori: Thank you for having me. It’s a pleasure to be here.
Interviewer: Ecobank recently celebrated its successful issuance of $400 million in senior unsecured Eurobonds. This marks the first public Eurobond issuance by a financial institution in sub-Saharan Africa since 2021. Can you tell us what this accomplishment means for Ecobank and for sub-Saharan Africa?
Jeremy Awori: Absolutely. The success of our Eurobond issuance is not just a milestone for Ecobank, but also a beacon of progress for the entire region. It highlights the potential of sub-Saharan Africa to access international capital markets, which has traditionally been a challenge. The bond was oversubscribed more than 2.1 times, showcasing strong demand and confidence from both international and African investors.
Interviewer: That’s impressive! Can you elaborate on what this oversubscription indicates about investor confidence in your Growth, Transformation, and Returns strategy?
Jeremy Awori: Certainly. The oversubscription reflects a deep-seated confidence in our strategic direction. Investors believe in our ability to foster economic growth while transforming Ecobank into a more competitive player on the global stage. It signals their trust in our vision and our dedicated focus on creating sustainable value.
Interviewer: The bonds have a maturity of October 2029 and an interest rate of 10.125%. How do you foresee the impact of the funds raised on Ecobank’s operations and the broader economic landscape in sub-Saharan Africa?
Jeremy Awori: The funds raised will be pivotal in advancing our initiatives across the continent. We aim to bolster our lending capacity, enhance digital banking services, and support financial inclusion efforts. In the broader scope, we hope to stimulate economic growth and development in sub-Saharan Africa, creating opportunities for businesses and individuals alike.
Interviewer: Speaking of digital banking, can you discuss how Ecobank is leveraging technology to improve financial services in the region?
Jeremy Awori: Absolutely. Digital banking is a game changer for us. We’re investing heavily in technology to offer seamless banking experiences. Our mobile and internet banking platforms are expanding access, especially in rural areas, where traditional banking services may not be available. This digital leap not only increases efficiency but also promotes financial literacy, which is crucial for economic growth.
Interviewer: As a leader in the banking sector, what challenges do you foresee as Ecobank and the region move forward?
Jeremy Awori: While there are significant opportunities, challenges such as economic instability, regulatory changes, and the need for infrastructure development remain. Navigating these issues will require a collaborative approach among governments, financial institutions, and private investors to foster a stable environment conducive to investment.
Interviewer: what message do you have for potential investors looking to engage with sub-Saharan Africa’s financial markets?
Jeremy Awori: I encourage them to look closely at the potential that sub-Saharan Africa holds. The region is brimming with talent and resources, and with the right investment and partnerships, we can create a sustainable and prosperous future. Ecobank is committed to leading the charge, and we welcome those who wish to join us on this journey.
Interviewer: Thank you so much, Jeremy, for shedding light on this pivotal moment for Ecobank and the future of banking in sub-Saharan Africa. We look forward to seeing how your initiatives unfold.
Jeremy Awori: Thank you! I appreciate the opportunity to share our vision.
Interviewer: And thank you to our audience for joining us today. Stay tuned for more insights on emerging markets and global finance here at Time.news.