Tag: Ecobank Transnational Inc

Ecobank Transnational Incorporated (ETI) has announced that its board of directors will meet on 2nd of December, 2021 to consider and approve the unaudited financial results of the Bank for the third quarter of the year (Q3) ended September 30, 2021.

Consequently, the firm also announced that it has commenced a closed period in the trading of its shares from October 1, 2021. The closed period will persist until 24 hours after the firm’s unaudited financial statements have been filed with the Nigerian Exchange Group Limited (NGX) and made public.

This is according to a disclosure signed by the Bank’s secretary, Madibinet Cisse and sent to the Nigerian Exchange Limited (NGX).

It is imperative to note that the closed period is in line with Rule 17.18(a) (Closed Period Rules) of the NGX’s Rule Book (2015). During this period, individuals with sensitive information about stock performance such as; Directors, managers, employees, consultants and their connected persons, are prohibited from trading in the shares of the bank either directly or indirectly.

For more information about the board meeting, click HERE.

Arise B.V, a leading African investment company, has made Additional Tier 1 (AT1) investment of about $75 million in Ecobank Transnational Incorporated (ETI)-the parent company of the Ecobank Group.

This is contained in a statement signed by ETI’s Head of Corporate Communications, Adenike Laoye, and sent to the Nigerian Exchange Limited (NGX).

According to the disclosure, the recent investment is Basel III compliant and is the first AT1 instrument to be issued by Ecobank Transnational Incorporated. In light of this, the financial giant described it as; ‘’a landmark transaction in the sub-Saharan Africa region.’’  The bank also revealed that the investment will help optimize and improve its Tier-1 capital by $75m.

This recent investment follows an earlier ground-breaking $350 million subordinated Sustainability Eurobond issued by ETI in June 2021, which was very well received by international investors across diverse continents. The Eurobond has since been listed on the London Stock Exchange as Tier 2 capital.

What will the additional capital be used for?

Commenting on what it intends to use the funds for; the pan-African banking group revealed that the additional investment would be deployed to meet its general corporate obligations which include loan growth and strengthening the capital buffers of profitable subsidiaries in two of its major markets – Francophone West African and Anglophone West Africa.

What they are saying:

 Commenting on the recent development, the Group Chief Executive Officer of ETI,  Ade Adeyemi said: ‘’This investment by Arise is a testament to continued support and confidence from our shareholders; their commitment to, and belief in our strategy which we remain focused on executing to deliver value to our shareholders and excellence to our customers. Indeed, in addition to improving our double leverage ratio, it is also a good boost for the firm and its staff”.

On the other hand, the Chief Executive Officer of Arise, Deepak Malik said: ‘’ETI is our primary banking investment in Francophone West Africa and Anglophone West Africa. We are very supportive of ETI’s growth ambitions and its ability to increase financial services to Agri, SMEs & retail customers. Our investment will also strengthen the balance sheet of ETI and provide additional risk capital”.

What you should know:

• ETI had earlier in June this year, raised $350 million from the issuance of its Tier-2 Sustainability Notes. The notes which will mature by June 2031, has a call option in June 2026 and was issued with a coupon rate of 8.75% with interest payable semi-annually in arrears.
• Arise B.V. (‘’Arise’’) is a leading equity investor in financial institutions in Sub-Saharan Africa and one of ETI’s existing major institutional shareholders. It currently manages assets in excess of $960 million in over 10 African countries, and has indirect banking exposure to over 33 countries in Sub-Saharan Africa.

Ecobank Transnational Incorporated (ETI) has formally launched its Tier 2 sustainability Notes, raising $350 million from the landmark issuance.

This is according to a press released signed by the firm’s Head of Corporate Communications, Adenike Laoye and seen by Nairametrics.

According to the notice, the recent deal is the first ever Tier 2 Sustainability Notes by a financial institution is Sub-Saharan Africa.  The notes, which matures in June 2031, has a call option in June 2026 and was issued with a coupon rate of 8.75% with interest payable semi-annually in arrears.

The financial giants also disclosed that 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.

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

Commenting on what the proceeds of the notes will be used for, the pan-African bank noted that it will be used to refinance new or existing eligible assets as described in ETI’s sustainable framework

Commenting on this 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.’’

What you should know:

• ETI had earlier announced the proposed launch of the Tier 2 sustainability notes, few days ago.
• The Joint Lead Managers and Bookrunners in the transaction were Citi, Mashreq, Renaissance Capital and Standard Chartered Bank.

Ecobank Transnational Incorporated, a leading Pan-African banking group and parent company of the Ecobank Group, has announced its plan to raise $300 million from the international debt capital markets through the issuance of Tier 2 qualifying sustainability notes.

According to a disclosure signed by the Group Head of Corporate Communications, Adenike Laoye, this plan was communicated to a host of regional Stock Exchanges that comprises of the Nigerian Exchange Group Plc (NGX), Ghana Stock Exchange and the Bourse Regionale des Valeurs Mobilieres.

According to the notice, ETI intends to list the Notes on the London Stock Exchange, with the anticipation that the Notes will be traded on its regulated market. Sequel to this, the issuance of the Notes is hence subject to prevailing market conditions and the conclusion of the necessary transaction documentation.

The Banking Group explained that an equivalent amount of the net proceeds of the Notes will be used to finance or re-finance, in part or full, new or existing eligible assets in accordance with ETI’s Sustainable Finance Framework.

More details about the nature of the Notes will be further communicated.