Togo-Based Ecobank Group Raises $125M in Oversubscribed Bond Issuance
TLDR
- Ecobank Transnational Incorporated (BRVM: ETIT) has raised $125 million through a senior unsecured bond issuance
- Buyers included asset managers and development finance institutions across Africa, Europe, the U.S., the Middle East, and Asia
- Proceeds will be used to refinance debt and improve liquidity. The transaction was arranged by Absa, Africa Finance Corporation, Afreximbank, Mashreq, and Standard Chartered
Ecobank Transnational Incorporated (BRVM: ETIT) has raised $125 million through a senior unsecured bond issuance, complementing a $400 million bond raised in 2024. The total $525 million in bonds will mature on October 15, 2029. The new issuance was priced at 102.634%, offering an effective yield of 9.375%.
Investor demand was strong, with the order book more than double the offering size. Buyers included asset managers and development finance institutions across Africa, Europe, the U.S., the Middle East, and Asia, highlighting continued investor confidence in Ecobank, which operates in 35 African countries.
Proceeds will be used to refinance debt and improve liquidity. The transaction was arranged by Absa, Africa Finance Corporation, Afreximbank, Mashreq, and Standard Chartered, with Renaissance Capital advising. However, Ecobank faces pressure from its Nigerian subsidiary, which is non-compliant with capital adequacy ratios and has requested a moratorium on a $300 million bond due in 2026.
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Key Takeaways
Despite the successful bond raise, ETI’s outlook is clouded by its Nigerian unit’s financial troubles. Moody’s flagged that failure to recapitalize the subsidiary or meet the 8% capital adequacy threshold could weaken group liquidity and trigger a downgrade. A $300 million bond at risk of default in 2026 adds urgency. If Ecobank Nigeria fails to restructure or meet regulatory ratios, it could drain group resources and damage investor confidence. The group’s dual leverage and limited dividend upstreaming from subsidiaries are also constraints. ETI’s efforts to tap international markets underscore its need to buffer against potential shocks from Nigeria and maintain credit ratings.
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