Business
Ecobank Successfully Repays $500 Million Eurobond Due April 18
Ecobank Successfully Repays $500 Million Eurobond Due April 18
In a significant financial milestone, Ecobank Transnational Incorporated has announced the successful repayment of its $500 million 5-year Eurobond that matured on April 18, 2024. This repayment marks a key achievement for the pan-African banking conglomerate, showcasing its commitment to financial stability and investor confidence.
Issued in April 2019, the Eurobond was listed on the prestigious London Stock Exchange with a coupon rate of 9.5%. The bond attracted a diverse group of global investors, including prominent development banks such as FMO and Proparco, who played pivotal roles as anchor investors in the issuance.
The total repayment, amounting to $524 million inclusive of principal and interest, was efficiently distributed to bondholders through the designated transaction agent on the specified maturity date, underscoring Ecobank’s adherence to financial obligations and commitment to transparency.
Ecobank’s Group Chief Financial Officer, Ayo Adepoju, expressed his satisfaction with the successful repayment, emphasizing the strategic significance of the inaugural bond in enhancing the bank’s global investor base and bolstering its presence in the capital markets. Despite the challenges posed by the volatile economic landscape in 2023 and beyond, including disruptions in global supply chains and financial markets, Ecobank has demonstrated resilience through its strong liquidity position, robust balance sheet, and effective leadership team.
It is noteworthy that the $500 million Eurobond, now successfully repaid, marked Ecobank’s debut bond listing on the London Stock Exchange. However, the group’s venture into bond issuances dates back to 2014 when it issued a $200 million bond listed on the Irish stock exchange. Building on its capital market expertise, Ecobank further strengthened its financial standing in 2021 by issuing a $300 million 5-year bond with a fixed coupon rate of 7.125%, set to mature in 2026 and also listed on the London Stock Exchange.
This latest accomplishment not only underscores Ecobank’s financial discipline and investor appeal but also highlights its strategic vision and adaptability in navigating complex market conditions. As Ecobank continues to forge ahead in the ever-evolving financial landscape, this successful Eurobond repayment serves as a testament to the bank’s resilience, credibility, and long-term sustainability in the global financial arena.
