Ecobank Group raises $350m Notes

Ecobank Transnational Incorporated (ETI) has successfully raised $350 million from Tier 2 Sustainability Notes.

This represents the first ever Tier 2 Sustainability Notes by a financial institution in Sub-Saharan Africa. The Tier 2 issuance is the first to have a Basel III-compliant 10NC5 structure outside of South Africa in 144A/Regs format and will be listed on the main market of the London Stock Exchange.

The bond, which matures in June 2031, has a call option in June 2026 and was issued with a coupon of 8.75 per cent with interest payable semi-annually in arrears.

An equivalent amount of the net proceeds from the notes will be used by ETI to finance or re-finance, new or existing eligible assets as described in ETI’s Sustainable Finance Framework.

Investor interest for this Sophomore Eurobond issue was global, including United Kingdom, United States, Europe, the Middle East, Asia and Africa, achieving a 360 per cent oversubscribed orderbook, of over $1.3 billion at its peak.

The transaction was anchored at the start by Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden N.V. (FMO), a Dutch development bank, with a committed $50 million order.

The notes saw significant demand from asset managers from Europe on opening (including the UK) demonstrated by a number of large tickets. Overall, investor interest was global including accounts from the United States, the Middle East, Africa and Asia.

Ade Ayeyemi, Group Chief Executive Officer of ETI, in a statement stated that “this is a landmark issue for Ecobank, and indeed the success of this first Sustainable Tier 2 issuance is testament to our clear strategy, solid positioning across the pan-African banking space as well as our deliberate and long term focus on sustainable initiatives. We are particularly pleased with the diverse order book which reflects the confidence investors have in Ecobank to deliver on our commitment to sustainable financing”.

The Joint Lead Managers & Book runners in the transaction were Citi, Mashreq, Renaissance Capital and Standard Chartered Bank.


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