IFC in advanced discussion to sell 14% equity stake in Ecobank

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The International Finance Corporation (IFC) and its Asset Management Company are in advanced discussions to sell equity holding in Ecobank Transnational Incorporated.

The International Finance Corporation, a member of the World Bank Group), and investment funds managed by the IFC Asset Management Company (AMC a wholly-owned subsidiary of IFC) have entered into a Share Purchase Agreement with a leading Dutch investment firm Arise B. V for the sale of their circa 14.1 percent stake in ETI.

Completion of the transaction is expected in the coming months, subject to due diligence, internal and regulatory approvals.

The Lomébased parent company of the Ecobank Group announced on the Nigerian Stock Exchange (NSE) this material information relating to its ownership structure.

ETI stocks were up by 5kobo or 0.51 percent to N9.85 at the close of trading on the Nigerian Stock Exchange.

IFC and ETI have worked together since 1993 to broaden access to finance, enhance trade liquidity, and strengthen Ecobank. Since 2009, IFC and the funds managed by the IFC Asset Management Company, through their investments, have been supporting Ecobank’s growth strategy across Africa in building a preeminent banking franchise.

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Ecobank raises $50million in Eurobonds  

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Ecobank Transnational Incorporated (ETI) the Lomé-based parent company of the Ecobank Group, has successfully raised an additional $50 million in Eurobonds, the bank says.

The bond due in April 2024 will be consolidated to form a single series with the $450 million 9.5% issued in April 2019 and due in April 2024, the pan-African bank said in a statement to the Nigerian Stock Exchange (NSE) on Thursday.

The tap issuance was launched as a RegS 5-year USD denominated senior unsecured bond offering. It was oversubscribed by over 4.6 times.

Ade Ayeyemi, Group Chief Executive Officer of ETI, on the success of the transaction, said ETI’s ability to open Africa to the world makes the bank a compelling choice as investor appetite deepens for emerging market offerings.

Acting Group Chief Financial Officer, Ayo Adepoju, commented that the success of the raise  “which was more than four times oversubscribed, confirms ETI as an attractive investment for fixed income investors.”

The issue price of the bond is 104.915% of the principal amount reflecting a yield of 8.25%, a difference of 1.5 percentage points and a significant improvement from the yield of 9.75% for the initial issue.

The tap issue with credit ratings of B and B- Stable respectively according to Standard and Poor’s and Fitch- in line with ETI’s corporate rating- have been placed with a broad range of institutional debt investors across Europe and Africa.

The transaction resonates with the pan-African bank’s strategic objectives and forms part of the proactive management of its balance sheet to diversify funding sources and extend the average debt maturity profile, the statement said.

The capital raised would be channelled to finance ETI’s general corporate activities and boost liquidity.

 

SEGUN ADAMS

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