Ecobank Transnational Incorporated (ETI), the parent company of the Ecobank Group, has announced the successful raising of $200 million syndicated loan facility.
The company made this announcement in a notification signed by the group chief financial officer of the company, Greg Davis to the Nigerian Stock Exchange (NSE), yesterday.
ETI disclosed that the facility was oversubscribed at $268.5 million, with ETI increasing the Deutsche Bank’s mandate as an arranger from $150 million to $200 million. “The facility supports ETI’s goal of maintaining a diversified funding base with strong market access. The loan will be due for repayment in November 2019,” Ecobank stated.
ETI recently, released its financial statements for the nine month period ended September 30, 2018, with revenue for the group increased from N414 billion in 2017 to N419 billion in the year under review. This represents a one per cent increase year on year. Profit before tax increased by 39 per cent from N69 billion in 2017 to N96 billion. Profit after tax also increased 31 per cent from N58 billion in 2017 to N76 billion, while Earnings Per Share (EPS) rose by 22 per cent to N2.46 from N2.01 in 2017.
Speaking on the Group performance in nine months, the Group CEO said, Ade Ayeyemi, said that “the initiatives the bank took in phase-one of its five-year strategic plan are starting to show results in its financial and business performance, saying that the risk profile of the bank’s credit portfolio is improving; it is increasingly becoming leaner and more cost efficient, as a results to its digitisation strategy, broadening products and services to include the unbanked.
He added that “we are seeing encouraging growth in trade loans, remittances, cards and e-banking, and foreign exchange and fixed income sales in some of our regions.”
He however said that loan growth has been tepid, despite the fact that the bank is seeing strong deposit generation in all of our businesses and regions, largely because Ecobank is seeing limited credit opportunities that meet its risk appetite.
According to Ayeyemi, we remain excited about the prospects for our diversified pan-African banking business model and in our operating regions.
“Economic activity is forecast to grow in Africa and we believe the firm is rightly placed to benefit from this growth. At the same time we are also keenly planning for any contingencies that will arise from any one of the global geo-political uncertainties.”
Incorporated in Lomé, Togo in 1988, Ecobank Transnational Incorporated (ETI) is the parent company of the leading independent pan-African banking group, Ecobank. It currently has a presence in 36 African countries. Ecobank is a full-service bank providing wholesale, retail, investment, and transaction banking services and products to governments, financial institutions, multinationals, international organisations, medium, small and micro businesses and individuals.