Bloomberg/Adrienne Surprenant

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Ecobank raises $450 million in Eurobond sale

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The funding will help the lender to meet its general corporate obligations, including the refinancing of a portion of debt it owes banks.

Sunday 14, April 2019

(Bloomberg) --Ecobank sold $450 million of euro bonds last week at yields that rank among the highest from emerging markets this year, the first debt sale from a lender with shares listed on the Nigerian stock exchange in 18 months.

In a statement, Renaissance Capital, one of the arrangers, said that one of Africa’s most geographically diverse banks issued five-year senior unsecured notes priced at 9.8 per cent.

Samuel Sule, Director of the Financing Group at RenCap, said that the transaction lured strong demand from development banks and financial institutions.

The transaction was also arranged by Deutsche Bank, Standard Bank Group and Standard Chartered.

Ecobank raised $200 million in loans last year, which are due for repayment in November. Many lenders in its biggest market of Nigeria are looking to raise funding to finance their operations or increase capital reserves after a 2016 recession triggered a surge in non-performing loans and stricter accounting rules increased impairments.

No Nigerian-listed bank had sold eurobonds since October 2017, when Fidelity Bank issued $400 million of five-year securities a 10.8 per cent. The price on those has since risen, sending the yield down to about 8.8 per cent.

 

TAGS : Ecobank, Deutsche Bank, Standard Bank Group, Standard Chartered, Renaissance Capital, Fidelity Bank

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