Ecobank Taps External Borrowers To Refinance $350m Debt Obligations

Ecobank Transnational Incorporated (ETI) Plc, has planned to tap international debt markets through the issuance of fixed rate reset Tier 2 nature Nlnotes under SEC Rule 144A and Regulation S to raise funds for its obligations.

The Pan-African lender said proceeds will finance a tender offer for its $350 million 8.750 per cent Tier 2 notes due 2031 and fund eligible green assets under its Green Bond Framework.

The company in a notice signed by its group executive director and CFO, Ayo Adepoju and released on the Nigerian Exchange Limited, the Ghana Stock Exchange and the Bourse Régionale des Valeurs Mobilières said that it is seeking to raise funds from the international debt capital markets.

According to the notice, this will be done through the issuance of Tier 2 qualifying Nature Notes pursuant to the United States Securities and Exchange Commission Rule 144A and Regulation S.

“The net proceeds of the issue of the Notes will be deployed to finance the concurrent any and all tender offer of the ETI $350 million 8.750 per cent Tier 2 notes due June 2031.”

The Company said, “ETI will allocate an amount equivalent to the full net proceeds of the issue of the Notes to finance or re-finance, in part or in full, new and/or existing eligible assets as described in ETI’s Green Bond Framework ( Ecobank – Sustainability ), as amended and supplemented from time to time.

“ETI intends to list the Notes on the London Stock Exchange, with the expectation that the Notes will be traded on its regulated market. It should be noted that the issuance of the Notes is subject to prevailing market conditions and the conclusion of the necessary transaction documentation.”