Ecobank has announced plans to raise a five-year dollar-denominated bond. The bank has therefore mandated international lenders to arrange investors’ meetings in the United States and Britain. According to Reuters, proceeds from the bond offer would be used for debt refinancing among other things. The bank has also appointed Deutsche Bank, Standard Bank, and Standard Chartered to arrange meetings.
Financial analysts noted that “currently, rates in the US have gone up this means the bank is paying more. There are, however, concerns about the exchange rate volatility which is currently low in the country but a swing may mean the bank will have to pay more naira to offset its dollar debt obligation.”
According to them, tier two banks in the country had a tougher time dealing with series of crisis, and many of them have had to embark on a capital raise.
Ecobank Bank had recently announced the successful placement of a $400 million convertible debt. The convertible debt was structured in three tranches, the first was a convertible loan facility of $250 million arranged through Public Investment Corporation (PIC) of South Africa, an institutional holder.
The second tranche consisting $140 million convertible notes was fully subscribed to by Qatar National Bank (QNB), also an institutional shareholder. While the third tranche comprising $10 million convertible notes was reserved for shareholders other than those who participated to the tune of $1.11 million. The remaining balance was subscribed by QNB, bringing QNB’s participation in both tranches to $148.9 million.
Ecobank in its first quarter (Q1) ended March 31, 2018 financial results for recorded 11 per cent surge in revenue from N178,388 billion Q1 2017 to N198,615 billion in Q1 2018. Profit- before – tax also increased by 48 per cent from N22.895 billion in Q1 2017. Ecobank Transnational Incorporated ETI was founded in 1988 under a private sector initiative spearheaded by the Federation of West African Chambers of Commerce and Industry, with the support of the Economic Community of West African States (ECOWAS).
The bank has operations in 36 African countries and employs over 17,000 people. ETI shares as at July 3, 2018 trade at N20 on the floor of the Nigerian Stock Exchange (NSE) with a year-to-date return of 17.6 per cent.
All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from LEADERSHIP Nigeria Newspapers. Contact: [email protected]
OPINION18 hours ago
Osun 2018 Governorship Election: Foretelling The Outcome
BUSINESS13 hours ago
JUST IN: CBN, NDIC Revokes Skye Bank’s Licence, Changes Name To Polaris Bank
NEWS12 hours ago
Why PDP Lost In 2015 – Kwankwaso
SPONSORED2 hours ago
How To Last For 25 Minutes Longer In Bed, Permanently End Pain And Embarrassment Of Weak Erection
NEWS23 hours ago
Saraki, A Very “Dangerous” Person — Presidency
NEWS13 hours ago
Customs Intercepts 11 Trucks Load Of Smuggled Rice
NEWS14 hours ago
2019: I’m Set To Give 21st Century Leadership – Tambuwal
CRIME12 hours ago
Caretaker Stab Tenant To Death Over Use of Bathroom In Benin