Today's Bulletin: December 4, 2024

More results...

Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Filter by Categories
Africacom
AfricaCom 2024
AI
Apps
Apps
Banking
Broadcast
CABSAT
Cabsat
Cloud
Column
Content
Corona
DTT
eCommerce
Editorial
Education
Entertainment
Events
Fintech
Fixed
Gitex
Gitex Africa
Healthcare
IBC
Industry Voices
Infrastructure
IoT
MNVO Nation Africa
Mobile
Mobile Payments
Music
MWC Barcelona
MWC Kigali
News
Opinion Piece
Q&A
Satellite
Security
Software
Startups
Streaming
Technology
TechTalks
TechTalkThursday
Telecoms
Utilities
Video Interview
Follow us

Ecobank Nigeria announces the pricing of its Senior Unsecured $300 million bond

February 12, 2021
3 min read
Author: Editorial Team

Ecobank Nigeria, a wholly owned subsidiary of leading pan-African banking giant, Ecobank Transnational Incorporated, the parent company of the Ecobank Group, announced that it has successfully priced its USD 300 million bond issuance maturing in February 2026, with settlement of the bond to take place on 16 February 2021.

The fixed-rate, US dollar-denominated bond, with a tenor of 5 years, carries a coupon rate of 7.125% 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. At the peak of marketing the transaction, the issue was over 3 times oversubscribed, with significant interest from international investors.

“Despite the challenging global environment owing to the COVID-19  pandemic, and on the back of a successful NGN 50bn Tier 2 issuance in December 2020, ENG was able to successfully issue and price Nigeria’s first 2021 senior unsecured 5 year bond transaction. Ecobank Nigeria, through this issuance, is being  proactive in optimizing its capital structure as it continues to drive its medium term growth strategy of establishing itself as a leading facilitator of pan-Africa and international trade and payments.”

Mr. Patrick Akinwuntan, Managing Director of Ecobank Nigeria

The transaction opened with Initial Price Thoughts (‘IPT’s’) of 7.75% and finally tightened to close at 7.125% 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 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.

“I would like to extend my appreciation to our regulators, the Central Bank of Nigeria, for their timely support and continuous guidance, in granting necessary regulatory approvals. We believe that our capital raising activities are key steps forward towards strengthening ENG beyond the regulatory ratios in addition to diversifying ENG’s medium-term financing sources. ENG is poised for continued growth in the Nigerian financial services industry.”

Mr. Patrick Akinwuntan, Managing Director of Ecobank Nigeria

This transaction followed a series of virtual global investor calls, with a number of blue-chip local, regional and international financial institutions, led by Citi, Mashreq, Renaissance Capital and Standard Chartered Bank as Joint Lead Managers and Bookrunners.

Follow us on LinkedIn

Newsletter signup

Sign up for our weekly newsletter and get the latest industry insights right in your inbox!

Please wait...

Thank you for sign up!