Banking & Finance
London Stock Exchange Entertains Ecobank Nigeria’s Senior Bond Issuance
Ecobank Nigeria, Thursday opened the market at London Stock Exchange through a virtual ceremony to celebrates the listing of its five-year fixed rate senior unsecured US$300 million bonds.
Ecobank Nigeria, a subsidiary of Ecobank Transnational Incorporated, the mother company of the Ecobank Group, provides the full suite of banking products, services and solutions through multiple channels to retail, commercial, corporate and public sector customers.
Recall that EBN announced recently that it has priced its USD 300 million bond issuance maturing in February 2026, with the settlement of the bond to take place on 16 February 2021.
READ: Ecobank Nigeria announces the pricing of its Senior Unsecured $300M Bond
Meanwhile, the bond carries a coupon rate of 7.125%, significantly below its Initial Price Thoughts (IPT) of 7.75%. The successful launch was three times oversubscribed and is the lowest coupon/yield by a Nigerian financial institution for a benchmark bond transaction since 2013. It has an Issuer Rating of B- from Fitch Rating Agency and S & P. Citi, Mashreq, Renaissance Capital and Standard Chartered Bank acted as Joint Lead Managers and Bookrunners.
London Stock Exchange Entertains Ecobank Nigeria’s Senior Bond Issuance
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Interestingly, the proceeds will provide medium-term funding and help to enhance the capacity of the Bank to support international trade and service across Africa.
Commenting on the successful listing, Patrick Akinwuntan, Managing Director, Ecobank Nigeria: “The strong demand for our bond shows the international appetite for the Ecobank franchise in Nigeria, its unique positioning for facilitating pan-Africa trade and the attractive opportunity for the many investors seeking to back world-class Nigerian corporates.”
