Headlines

Ecobank Nigeria Receives N50 Billion Subordinated Loan

Ecobank Nigeria has secured a N50 billion loan, 10-year bilateral subordinated loan, in order to support Micro, Small and Medium Scale Enterprises (“MSMEs”) and Smal businesses.

Brandnewsday reports that this was made known in a statement sent to the Nigerian Stock Exchange (NSE), by Ecobank Nigeria’s Group Head, Adenike Laoye, a subsidiary of Ecobank Transnational Incorporated (‘’ETI’’).

The secured N50 billion is a 10-year bilateral subordinated loan.

Advertisement

According to a report, the bilateral funding will give an opportunity to the bank to maintain stable liquidity and improve its balance sheet, especially the capital adequacy ratio by an estimated circa 300 basis points.

READ: Ecobank Mobile USSD Transfer Code To All Banks In Nigeria

In the released statement to the NSE, the Nigerian Bank disclosed that the funding will provide stable medium-term liquidity to the balance sheet of the bank.

Advertisement

Ecobank Nigeria

“Ecobank Transnational Incorporated (“ETI”), the parent of the Ecobank Group, announces that one of its significant subsidiaries, Ecobank Nigeria, secured N50 billion, 10-Year bilateral subordinated loan.

“The bilateral funding provides stable medium-term liquidity to the balance sheet of Ecobank Nigeria and positively improved its balance sheet ratios, especially the capital adequacy ratio by circa 300 basis points. The transaction proceeds would be deployed to support Micro, Small and Medium Scale Enterprises (“MSMEs”) and Small Corporates,” the statement said.

Ecobank Transnational Incorporated Nigeria

Recall that the Ecobank Transnational Incorporated Nigeria had earlier recorded an 11% increase in its interest income to N139.6 billion for Q3 2020 as reported.

Advertisement

What is a subordinated loan?

Subordinated loans have lower priority than other debt instruments in case of liquidation. They are only repayable after other debts have been paid.

This debt can either be secured or unsecured and it typically has a lower credit rating and higher yield than other senior debt.

Facebook Comments
Advertisement
Adebayo

Adebayo is a Content Developer and website manager who loves to learn, unlearn and relearn. He has a knack for exploring the tech world. He is always thirsty to learn as the tech ecosystem evolves every day.

Recent Posts

Apple Unveils iPhone 17 Air, Slick, Slimmer Than Previous Models (PHOTOS)

Apple Inc is set to present a slimmer iPhone 17 Air model, marking a potential…

2 weeks ago

Six-Year-Old Ella Shoots, Kills American Police Officer In Mother’s Defense

A six-year-old girl, Ella, fatally shot a 28-year-old American police officer last month after witnessing…

2 weeks ago

LIRS Urges Taxpayers To Meet March 31 Deadline For Annual Tax Return Submission

The Lagos State Internal Revenue Service (LIRS) reminds all individual taxpayers, including self-employed individuals, those…

3 weeks ago

Stanbic IBTC Bank Partners Autochek To Boosts Car Ownership, Disburses N4Bn

Stanbic IBTC Bank, a prominent financial institution in Nigeria, has partnered with Autochek, an innovative…

3 weeks ago

Stanbic IBTC PMI®: Output Growth Accelerates To Fastest In Just Over One Year

The headline figure derived from the survey is the Stanbic IBTC PMI® - Purchasing Managers’…

3 weeks ago

Stanbic IBTC Bank Reintroduces Its Private Banking Offerings To Empower Nigerians Build Lasting Wealth

Stanbic IBTC Bank, a subsidiary of Stanbic IBTC Holdings and a leading financial service solutions…

3 weeks ago

This website uses cookies.