Home ECONOMY Ecobank lists Sh64 billion eurobond on London Stock Exchange

Ecobank lists Sh64 billion eurobond on London Stock Exchange

by biasharadigest

The parent company of Ecobank was hosted at the London Stock Exchange (LSE) on June 7 following the lender’s issuance of a Ksh64.4 billion eurobond.

According to the bank, the bond was “oversubscribed with strong demand from international investors in the United Kingdom, United States, Europe, Middle East, Asia and Africa.”

Headquartered in Lome, Togo, the bank was hosted to a market opening ceremony at the LSE.

The LSE’s trading hours are usually set to open at 8:00am UK time, which translates to 10:00am Kenyan time.

London’s bourse closes at 4:30pm in the UK (6:30pm in Kenya).

Ecobank’s eurobond is a five-year senior unsecured notes, which mature in April 2024. The bond was launched with a coupon interest rate of 9.5% percent per annum, payable semi-annually in arrears.

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Ade Ayeyemi, Group CEO of Ecobank said: “The successful issuance of our inaugural Eurobond on the main London market demonstrates international investors’ approval and confidence in Ecobank’s long-term strategy and prospects as a strong and sustainable pan-African financial services institution.”

He added that the issuance also demonstrates the ability of African corporates to access international capital markets.

The Group’s Acting CFO Ayo Adepoju said that the lender’s access to international capital markets was part of Ecobank’s move towards boosting its liquidity profile, refinancing maturing facilities and strengthen foundations to ensure long-term sustainable growth and profitability.

Ecobank’s was formed in 1985 in Togo and its parent company is named Ecobank Transnational Incorporated (ETI).

ETI will use the net proceeds of the placement for general corporate purposes including the refinancing of maturing debt facilities.

The bank brands itself as a pan-African banking conglomerate with operations in 36 countries in Africa. It is listed on the Ghana Stock Exchange (GSE), the Nigeria Stock Exchange (NSE) as well as on the West African regional bourse, Bourse Régionale des Valeurs Mobilières (BRVM).

In Kenya, the bank’s footprint began when ETI acquired 75% of EABS Bank in June, 2008.

The acquisition saw the change of name to Ecobank Kenya Limited, before its shareholding increased to 100% by end of 2016.

It has 18 branches in the country and in 2018 made a profit of Ksh70 million. It is not listed on the Nairobi Securities Exchange (NSE).

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