Ecobank issues $400m bond at 10.125% interest rate

Ecobank Transnational Incorporated (ETI) has announced the successful pricing of its $400 million 10.125 percent notes due October 15, 2029, with interest payable semi-annually in arrears on April 15, and October 15 in each year, commencing on April 15, 2025.

The net proceeds from the issuance of the Notes will be used for general corporate purposes, including refinancing of the U.S. $350m Senior Bridge-to-Bond Loan Facility entered into in March 2024.

This is ETI’s third issuance on the international bond markets and the first public Eurobond issuance by a financial institution in Sub-Saharan African since 2021.

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“The transaction was well-received with solid demand from International and African investors achieving a final orderbook oversubscription rate, reflecting the trust and confidence investors have in Ecobank’s Growth Transformation and Returns Strategy.

“We are thankful for the support and partnership from Absa, Africa Finance Corporation, African Export-Import Bank, Mashreq, and Standard Chartered Bank, who acted as Joint Lead Managers and Joint Bookrunners, and Renaissance Capital Africa, who served as the Financial Adviser for the transaction.

“We deeply value and appreciate the strong support from our Development Finance Institution partners, including the Africa Finance Corporation, PROPARCO, and the Eastern and Southern African Trade and Development Bank, who helped anchor the transaction,” the bank said.