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Ecobank Nigeria’s $300m Eurobond Goes for 7.13%

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Patrick Akinwuntan Ecobank Nigeria

By Dipo Olowookere

A few days ago, Ecobank Transnational Incorporated informed the investing public that its Nigerian subsidiary, Ecobank Nigeria Limited, was intending to approach the international debt capital market to source for Eurobond worth $300 million.

On Thursday, the pan-African lender again issued another notice to the Nigerian Stock Exchange (NSE) to announce that the 5-year bond has been priced and was sold for 7.13 per cent.

According to the disclosure, as a result of robust demand and global investors’ strong appetite for the Ecobank franchise in Nigeria, the transaction, which opened with Initial Price Thoughts (IPT’s) of 7.75 per cent, finally settled at 7.13 per cent.

“Despite the challenging global environment owing to the COVID-19 pandemic, and on the back of a successful N50 billion Tier 2 issuance in December 2020, Ecobank Nigeria was able to successfully issue and price Nigeria’s first 2021 senior unsecured 5-year bond transaction,” the Managing Director of Ecobank Nigeria, Mr Patrick Akinwuntan, said.

Continuing, he noted that through this issuance, Ecobank Nigeria “is being proactive in optimising its capital structure as it continues to drive its medium-term growth strategy of establishing itself as a leading facilitator of pan-Africa and international trade and payments.”

“We believe that our capital raising activities are key steps forward towards strengthening Ecobank Nigeria beyond the regulatory ratios in addition to diversifying Ecobank Nigeria’s medium-term financing sources. Ecobank Nigeria is poised for continued growth in the Nigerian financial services industry,” he concluded.

Business Post reports that the fixed-rate, Dollar-denominated note, which has an Issuer Rating of B-from Fitch and S&P, will be listed on the London Stock Exchange (LSE).

It was gathered that at the peak of marketing the paper, it was over 3 times oversubscribed, with significant interest from international investors after a series of virtual global investor calls with a number of blue-chip local, regional and international financial institutions led by  Citi, Mashreq, Renaissance Capital and Standard Chartered Bank as joint lead managers and book-runners.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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Banking

Standard Chartered Introduces Smart Business Loan

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Standard Chartered Bank Nigeria

By Modupe Gbadeyanka

A credit facility package targeted at small business owners in Nigeria called Smart Business Loan (SBL) has been introduced by Standard Chartered Bank.

The product was designed to help players in the Small and Medium Enterprises (SMEs) sector meet their short to medium-term needs. It is an unsecured instalment/term loan to business banking clients within key target sectors.

A statement from the lender explained that qualified business banking clients will be able to access up to N20 million loan without providing tangible security/collateral to purchase assets, finance business expansion and other capital expenditure needs.

The maximum tenor for the credit facility is two years, Business Post gathered.

Before now, customers were required to provide full collateral cover to access loans from the bank’s business banking segment but SBL provides the necessary flexibility to its clients.

“As a bank, our purpose is to drive commerce and prosperity in the locations we operate in. This is done through offering cash, lending, trade and wealth management solutions that specifically drive economic growth,” the Head of Consumer, Private and Business Banking (CPBB), at Standard Chartered Bank Nigeria, Mr David Idoru, stated.

“Within our CPBB, the promotion of commerce is largely done through our business banking segment by banking SMEs.

“We are constantly looking for ways to ensure our clients get access to the needed support to enable their businesses to thrive and SBL provides the necessary flexibility for business growth,” Mr Idoru added.

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Banking

DLM Capital Praises Employees for Global Finance Award

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DLM Capital

By Modupe Gbadeyanka

Employees of DLM Capital Group, a leading developmental investment bank in Nigeria, have been applauded for the award received by the company recently.

DLM Capital was named the Best Development Finance Company Nigeria 2021 by the Global Banking and Finance Review magazine.

The honour was in recognition of the institution’s dedication to providing leadership and excellence in Nigeria’s development finance space.

While commenting on the award, the Head of Investment Banking at DLM Capital, Mr Emeka Ngene, said the honour was made possible as a result of the continuous collaboration of the DLM community.

“It is indeed an honour to receive this recognition from such a prestigious body as Global Banking and Finance Awards.

“We are pleased to be associated with this award which speaks to our dedication and hard work in addition to the expertise and innovative solutions we have implemented over the years.

“This further demonstrates our commitment to designing and implementing developmental funding solutions for the development of the country.

“We are therefore dedicating this award to our team for their continuous support in ensuring that DLM Capital thrives in its pursuit to push the frontiers of developmental capital market solutions in the Nigerian financial ecosystem.

“We are delighted once again to have been identified for our accomplishments among other players across the continent,” he stated.

Since 2011, the Global Banking & Finance Awards has honoured companies that stand out in their various areas of expertise in the banking and finance industry, thereby recognizing the accomplishments and significant revolutions that emerge every year within the global finance community.

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Banking

Ecobank Offers Back-to-School Loan Packages to Parents

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Ecobank Nigeria

By Aduragbemi Omiyale

The desire to ease the financial burdens of parents and guardians as regards the payment of school fees of their children and wards for the 2021/2022 school year has made Ecobank Nigeria come up with affordable loan packages.

The Head of Consumer Banking at Ecobank Nigeria, Mrs Korede Demola-Adeniyi, explained that the introduction of the credit facility is in line with the lender’s overall strategy to support the development of the nation’s education sector.

A statement from the financial institution disclosed that the loan packages were designed under its back-to-school initiatives and are also available to school owners through special infrastructure loans.

“As a bank that has the interest of its customers at heart especially at this period when schools resume, we understand the importance of education. Children deserve to go to school and we are making it easy for parents to provide them with this basic right,” she said.

Speaking specifically on the loans available for the educational institutions, she noted that they could be accessed without bottlenecks as the bank has taken into cognisance the harsh effects of the COVID-19 pandemic.

Mrs Demola-Adeniyi urged schools to appoint the bank as their preferred financial institution for payments and collections, noting that Ecobank has demonstrated pedigree and expertise in fees collection, locally and internationally.

She further encouraged schools and individuals that are yet to open Ecobank accounts to do so in order to access the offers available.

The banker also said Ecobank’s digital offerings are targeted at reducing the financial burden on parents, students and schools, and also facilitating the ease of payment of fees without hassles.

She listed the digital offerings to include Ecobank Mobile App, EcobankPay and Ecobank Online for contactless fees payment; personal loans and salary advance packages at competitive interest rates, international transfers for offshore school fees payment and affordable remittance offerings.

Mrs Demola-Adeniyi also noted that families abroad who wish to send money home to help with fees can do so at zero charges on the Rapidtransfer app.

The bank has also provided the banking-for-school pack for educational institutions to access working capital and loans. The features of this pack include easy fee collections, zero charges on collection accounts with EcobankPay, secure online banking with Omni Lite and cards for easy payments.

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