Ecobank Pays Off $500 Million Eurobond Following Five-Year Term
Ecobank Transnational Incorporated announced the repayment of its $500 million five-year Eurobond, scheduled for today, April 18th, as disclosed in a corporate filing with the Nigerian Exchange Limited.
Ayo Adepoju, the Group Chief Financial Officer of ETI, highlighted that this bond, issued in April 2019, marked ETI's inaugural Eurobond issuance. The timely repayment underscores ETI's strong financial position.
Adepoju noted, "The Eurobond garnered significant interest from a diverse pool of global investors, including esteemed long-term partners such as FMO and Proparco, who served as anchor investors for the issuance."
Adepoju further mentioned that the Eurobond, listed on the main market of the London Stock Exchange, carried a coupon rate of 9.5 per cent.
He stated, "The repayment, comprising principal and interest totaling $524 million, was disbursed to bondholders via the transaction agent on the bond's maturity date, April 18, 2024."
"This inaugural bond, which we are retiring today, played a crucial role in introducing our firm to a broader spectrum of global investors and significantly enhanced the visibility of our brand in the capital markets."
"In light of the challenging operating landscape prevalent throughout much of 2023, compounded by ongoing disruptions in the global supply chain and financial markets, the Group's resilience shines through. Bolstered by strong liquidity, a robust balance sheet, and effective leadership, we continue to navigate these hurdles."
"In 2019, ETI unveiled intentions to issue $500 million in Eurobonds, potentially securing yields that would stand among the highest from emerging markets that year."
"According to Bloomberg, market discussions indicated that the notes were priced in the high nine percent range, as the bank aimed to sell $500 million of its five-year debt."
The disclosure about the bank's potential offering of five-year senior unsecured notes, likely to be priced in the high nine percent range, was sourced from an individual familiar with the matter. This person requested anonymity as they were not authorized to speak publicly on the subject.
ETI's shares are listed and traded on the Nigerian Exchange Limited, the Ghana Stock Exchange, and the BRVM in Abidjan.
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