Ecobank Smash Record with The Issuance of The First Sub-Saharan Tier 2 Sustainability Notes Issuance

Ecobank Transnational Incorporated

Ecobank Transnational Incorporated (ETI) has affirmed that it raised a total sum of $350 million from the issuance of its recently launched Tier 2 sustainability Notes (hereinafter referred to as ‘’note’’ or ‘’notes’’).

This is according to a press statement signed by the Group’s Head of Corporate Communications, Adenike Laoye.

Naijabusiness.com.ng gathered that the recent action is sequel to an earlier press release issued by the financial giants few days ago, where it categorically stated that it will be launching the aforementioned bond imminently.  True to this, the landmark notes have not only been launched, but equally oversubscribed by investors.

According to the notice, the Tier 2 Sustainability Notes recently issued by the pan-African bank is the first ever by a financial institution is Sub-Saharan Africa.  The note is expected to mature in June 2031, with a call option in June 2026. It was issued with a coupon rate of 8.75% with interest payable semi-annually in arrears.

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Sharing his thoughts about the recent deal, the Group Chief Executive Officer of ETI, Ade Ayeyemi, 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.’’

Additionally, the Tier2 issuance is the first to have a Basel III- compliant 10NC5 structure outside of South Africa in 144A/RegS format. Sequel to this, the notes will be listed on the main market of the London Stock Exchange.

What will the proceeds be used for?

According to the recent disclosure, the pan-African bank reiterated its earlier stand that the proceeds will be used to refinance new or existing eligible assets as described in ETI’s sustainable framework

On the other hand, the bank emphasized that investors’ interest in the notes were impressive, with major interest from markets in the UK, USA, Europe, the Middle East, Asia and Africa, thus achieving a 3.6x oversubscribed order book, of over $1.3 billion at its peak..

Naijabusiness.com.ng also gathered that the Joint Lead Managers and Bookrunners in the transaction were Citi, Mashreq, Renaissance Capital and Standard Chartered Bank.