Massive appetite as Ecobank $350m Eurobond receives 360% global oversubscription

Massive appetite as Ecobank $350m Eurobond receives 360% global oversubscription

• • • • Off to London Stock Exchange for listing

Massive interest has characterized a $350 million Tier 2 Sustainability Notes successfully raised recently by Ecobank Transnational Incorporated which received 360 per cent oversubscription from investors across the world.

In a filling at the Nigerians Exchange Limited by the Lome based parent company of the Ecobank Group, the note represents the first-ever Tier 2 Sustainability Notes by a financial institution in Sub-Saharan Africa.

In addition, the Tier 2 issuance is the first to have a Basel III-compliant 10NC5 structure outside of South Africa in 144A/RegS format and will be listed on the main market of the London Stock Exchange.

The bond, which matures in June 2031, has a call option in June 2026 and was issued with a coupon of 8.75 per cent with interest payable semi-annually in arrears.

An equivalent amount of the net proceeds from the notes will be used by ETI to finance or re-finance, new or existing eligible assets as described in ETI’s Sustainable Finance Framework, on which DNV has issued a Second Party Opinion, the financial institution explained.

The filling read, “Investor interest for this Sophomore Eurobond issue was global, including United Kingdom, United States, Europe, the Middle East, Asia and Africa, achieving a 3.6x oversubscribed orderbook, of over $1.3 billion at its peak.

“The transaction was anchored at the start by Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (“FMO”), a Dutch development bank, with a committed US$50 million order.

“The notes saw significant demand from asset managers from Europe on opening (including the UK) demonstrated by a number of large tickets. Overall, investor interest was global including accounts from the United States, the Middle East, Africa and Asia.”

Ade Ayeyemi, Group Chief Executive Officer of ETI described the transaction as a landmark issue for Ecobank, “and indeed the success of this first Sustainable Tier 2 issuance is testament to our clear strategy, solid positioning across the pan-African banking space as well as our deliberate and long-term focus on sustainable initiatives.

“We are particularly pleased with the diverse orderbook which reflects the confidence investors have in Ecobank to deliver on our commitment to sustainable financing”, he said.

The Joint Lead Managers & Bookrunners in the transaction were Citi, Mashreq, Renaissance Capital and Standard Chartered Bank.