Following a successful bond offering, Ecobank Transnational will raise an extra $250 million in Tier 1 capital.
After a resolution was voted at the company’s Extraordinary General Meeting (EGM), shareholders have given Ecobank Transnational Incorporated (ETI) permission to raise up to $250 million in Additional Tier 1 (AT1) capital qualifying instruments.
Following ETI’s successful issuing of $125 million in 10.125% Senior Notes due in 2029, this development has occurred.
The $400 million Senior Notes issued on October 15, 2024, which have the same interest rate and maturity date, will be combined with the most recent notes, which were issued on May 15, 2025.
Access to Tiered Subscriptions for Shareholders.
ETI revealed that the forthcoming AT1 instruments will be offered for subscription in tiers in a statement submitted to the Nigerian Exchange Group (NGX) on Thursday, June 26 and signed by Company Secretary Madibinet Cissé:
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A maximum of 100 stockholders will have first priority, with allocations made according to first-come, first-served.
Depending on availability, other interested investors will be given second priority.
ETI made the following statement about pricing mechanics.
“The conversion price of the AT1 instrument shall be the higher of a floor price of $0.01 per ordinary share or the 5-day Volume Weighted Average Price (VWAP) on the NGX at the time of conversion—converted to U.S. dollars using the prevailing exchange rate.”
Market Interest Surges in Previous Debt Issuance
ETI’s earlier $125 million offering in May was met with strong investor demand. The issuance attracted a peak order book of approximately $235 million, leading the issuer to upsize the deal by 25%.
The pricing was eventually set at 9.375%, which was 37.5 basis points inside the initial pricing guidance of 9.725%.
The offering followed a round of investor engagement that began with an announcement on April 14, 2025, and included a series of investor calls aimed at strengthening confidence in the Ecobank Group’s capital structure and regional banking strategy.
The order book officially opened at 9:00 AM on May 15, 2025, and garnered significant participation from institutional investors and market participants across multiple jurisdictions.
What You Should Know
Ecobank Transnational Incorporated (ETI) is a leading Pan-African banking franchise with a presence across 35 African countries.
- The company’s Net Interest Income (NII) increased by 2% year-on-year to US$295M in the first quarter of 2025, with its Non-Interest Revenue (NIR) ratio standing at 25.2% for the period.
- With a strong shareholder base, the bank has successfully raised US$1.4bn in Eurobonds since its debut offering in 2019.
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