ECOBANK TO RAISE $300M FROM INTERNATIONAL DEBT MARKET

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Ecobank Transnational Incorporated (ETI) has disclosed plan to raise $300 million senior notes from the international debt capital market.

The group revealed this in a notification to the Nigerian Stock Exchange (NSE) last Friday. According to the group, the funds would be raised by its key subsidiary, Ecobank Nigeria Limited and the transaction is pursuant to the United States Securities and Exchange Commission Rule 144A and Regulation S.

ETI explained that the proceeds of the Eurobond would provide medium term funding and help to enhance the capacity of the bank to support international trade and service in Africa.

“Further, the Notes, which will be issued through a Dutch special purposes funding vehicle, will be listed on the London Stock Exchange. In view of the foregoing, ETI is pleased to notify the Nigerian Stock Exchange and the investing public of the proposed launch of the Notes by the bank.

“The bank intends to list the Notes on the London Stock Exchange, with the expectation that the Notes will be traded on its regulated market,” it said.

The group disclosed that the Central Bank of Nigeria (CBN) has confirmed that it has no objection to the transaction, adding that the transaction is subject to prevailing market conditions and the conclusion of the necessary documentation.

Ecobank Group recorded a revenue of over N630 billion for the year ended December 31, 2020, representing a growth of seven per cent when compared to N586.9 posted in 2019. Also, value of its total assets now stood at N10.2 trillion after a 19 per cent rise above N8.591 trillion.

The bank also recorded improved performance in other key financial indices despite the harsh operating environment with deposits from customers went up 23 per cent to N7.3 trillion from N5.9 trillion; loans and advances to customers grew by nine per cent to N3.7 trillion, from N3.4 trillion.

However, despite the bank’s good showing in deposits from customers and revenue, profits was impacted by the provisioning for goodwill of about N60 billion for the acquisition of Oceanic Bank in 2011. Consequently, the bank ended with profit before tax and goodwill impairment closed at N126.4 billion, while profit after tax stood at N35.9 billion.

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