The London Stock Exchange (LSE) hosted the Ecobank Transnational Incorporated (ETI), a Togo-based parent company of the Ecobank Group, after a successful listing of the company’s Eurobond on the LSE.
ETI was invited by the LSE to celebrate the $500 million Eurobond issuance which was oversubscribed with strong demand from international investors.
A statement released by the company shows that the latest Eurobond follows Ecobank’s previous convertible bond issuance on the International Securities Market in 2017.
ETI said it will use the net proceeds of the placement for general corporate purposes including the refinancing of maturing debt facilities.
The listed Eurobond received strong demand from the United Kingdom, United States, Europe, the Middle East, Asia, and Africa. The five-year senior unsecured notes, which mature in April 2024, were launched with a coupon interest rate of 9.50 percent per annum payable semi-annually in arrears.
Ade Adeyemi, the Group Chief Executive Officer of Ecobank noted that the successful issuance demonstrates international investors interest in Ecobank’s prospect and confidence in its long-term strategy.
According to Adeyemi, “the successful issuance of our inaugural Eurobond on the main London market demonstrates international investors’ approval and confidence in Ecobank’s long-term strategy and prospects as a strong and sustainable pan-African financial services institution. It also demonstrates the ability of African corporates to access international capital markets”.
Also speaking on the listing, the Acting Group Chief Finance Officer of Ecobank, Ayo Adepoju, said the company’s access to international capital markets enables the company to boost its liquidity profile.
Adepoju said “Ecobank places great emphasis on constantly reviewing our capital allocation strategies to ensure that we have the right strategic positioning, competitive advantages, products and resources to increase efficiency and profitability”.
He added that “our access to international capital markets are part of the mix and enable us to boost our liquidity profile, refinance maturing facilities and strengthen our foundations to ensure long-term sustainable growth and profitability for all our stakeholders”.