Adedapo Adesanya
By Adedapo Adesanya
Ecobank has signed a $250 million senior unsecured bridge-to-bond loan with the African Export-Import Bank (Afreximbank), aimed to support trade finance and the general corporate purposes of the group.
It is expected to benefit the lender’s operations in 35 sub-Saharan African countries, as well as France, the United Kingdom, the United Arab Emirates and China, where its pan-African platform provides a single gateway for payments, cash management, trade, and investments.
Africa Finance Corporation (AFC) acted as global coordinator and initial mandated lead arranger of the facility and Mashreqbank psc. joined the transaction as a mandated lead arranger.
The facility has a tenor of twelve months, with a six-month extension option at the lenders’ discretion.
The bridge-to-bond loan also comprises an accordion feature that enables an increase in the total commitments under this facility within a given timeframe.
Speaking on the deal, Mr Ayo Adepoju, Ecobank’s Group CFO, commented, that the facility will serve as an additional buffer for the lender amid current market realities, which he noted are challenging.
“We are very excited about this new facility, which provides additional liquidity buffers for the bank. The firm’s continued ability to demonstrate market support and, in particular, diversify its funding sources under challenging economic conditions reflects credibility that has been purposefully built in the market and across the African continent over many years.”
He commended the commitment of the teams that worked on the facility and recognised the continued efforts to build strong partnerships, as well as the leadership provided by the Lead Arrangers.
Business Post recalls that in 2017, Ecobank secured a five-year senior unsecured loan of $250 million from Deutsche Bank AG, a German global banking and financial services company.
