Ecobank to Raise $300m Eurobond for International Trade

By Dipo Olowookere

The Nigerian arm of a pan-African financial institution, Ecobank Transnational Incorporated, Ecobank Nigeria Limited, is seeking to raise fresh capital.

The lender will approach the global debt capital market to sell Eurobond worth $300 million to enhance its capacity to support international trade and service in Africa.

Ecobank has not hidden its intention to be a major player in the African trade ecosystem, especially with the commencement of the African Continental Free Trade Area (AfCFTA) on January 1, 2021.

The company is positioning itself to be the bank that provides financial services to business owners in Africa and facilitate smooth trading among countries on the continent.

Ecobank, in a statement, said the $300 million notes would be listed on the London Stock Exchange (NSE) when issued to investors.

It also noted that the capital raising would be done through the Dutch special purposes funding vehicle, adding that the transaction was subject to prevailing market conditions and the conclusion of the necessary transaction documentation.

However, the bank has received a no objection for the exercise from the Central Bank of Nigeria (CBN), while the senior notes are in line with the United States Securities and Exchange Commission Rule 144A and Regulation.

Last year, the Managing Director of Ecobank Nigeria, Mr Patrick Akinwuntan, had said the lender was prepared to partner with other organisations to explore the opportunities available in the AfCFTA, noting that the bank was ready to deploy its platform and network to achieve the objectives of the single trade deal.

Last month, the Group Chief Executive Officer of Ecobank, Mr Ade Ayeyemi, had declared that the banking group was one of the key supporters of the initiative, expressing his confidence that AfCFTA will be of great benefit to both the continent and the bank’s customers, adding that the pan-African banking group would facilitate smooth and instant payments as countries start the implementation.

The AfCFTA is a free trade area founded in 2018 but came into effect this January 1, 2021. The policy aims at creating a single African wide market for goods and services.