Ecobank Transnational Incorporated (ETI) has signed a $250 million senior unsecured bridge-to-bond loan facility to support trade finance and the general corporate purposes of the group.
The facility has a tenor of twelve months, with a six-month extension option at the lenders’ discretion.
The African Export-Import Bank (Afreximbank) and Africa Finance Corporation (AFC) acted as global coordinators and initial mandated lead arrangers. Mashreqbank psc. joined the transaction as a mandated lead arranger.
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.
Ecobank’s Group CFO, Ayo Adepoju commented, “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 the amount of work that has been done in cementing relationships and building credibility in recent years”.
Bridge-to-bond loans are short-term financing solutions that serve as a bridge between a company’s immediate funding needs and its long-term financing plans, typically in the form of issuing bonds.
These loans provide interim financing for companies to meet urgent financial requirements while they prepare for longer-term capital-raising activities, such as issuing bonds.
We’ve got the edge. Get real-time reports, breaking scoops, and exclusive angles delivered straight to your phone. Don’t settle for stale news. Join LEADERSHIP NEWS on WhatsApp for 24/7 updates →
Join Our WhatsApp Channel
