After the completion of its five-year term, Ecobank Transnational Incorporated has fully settled its $500 million Eurobond, which was scheduled for repayment on April 18th.
The bank made this announcement in a corporate filing submitted to the Nigerian Exchange Limited, as reported by PUNCH Online on Thursday.
During the disclosure, Ayo Adepoju, the Group Chief Financial Officer of ETI, emphasized that this Eurobond marked ETI’s initial issuance in April 2019, highlighting that the successful repayment reflects the strong financial position of ETI.
Adepoju mentioned, “The issuance of the Eurobond garnered positive interest from a diverse range of global investors, including our esteemed long-term partners in development, FMO and Proparco, who played significant roles as anchor investors in the offering.”
Further elaborating, Adepoju noted that the Eurobond was listed on the primary market of the London Stock Exchange with a coupon rate set at 9.5 percent.
“The total repayment comprising both the principal and interest, amounting to $524 million, was disbursed to bondholders through the appointed transaction agent on the maturity date, April 18, 2024.
“The inaugural bond being retired today played a pivotal role in enhancing our visibility among global investors and bolstered our presence in the capital markets,” he added.
“Despite the challenging operating landscape experienced throughout most of 2023 and still persistent today – notably due to disruptions in the global supply chain and financial markets – the Group has demonstrated resilience through strong liquidity, a solid balance sheet, and an effective leadership team.”
Back in 2019, ETI had announced plans to issue $500m Eurobonds at yields that could rank among the highest in emerging markets that year.
According to Bloomberg, market discussions hinted at the notes being priced around the high nine percent range as the bank pursued the sale of $500m in five-year debt.
The information regarding the planned offering of five-year senior unsecured notes priced around the high nine percent range was sourced from an anonymous individual familiar with the matter, as they were not authorized to publicly disclose the details.
Shares of ETI are actively traded on the Nigerian Exchange Limited, the Ghana Stock Exchange, and the BRVM in Abidjan.