Ecobank Nigeria has announced the pricing of its $300m bond issuance maturing in February 2026, with settlement of the bond to take place on February 16, 2021.
In a statement on Thursday, the bank revealed that the fixed-rate, United States dollar-denominated bond with a five-year tenor, carried a coupon rate of 7.12 per cent and would be listed on the London Stock Exchange.
The bank added that the issuance was accompanied by an Issuer Rating of B- from Fitch and Standard & Poor’s.
“The transaction opened with Initial Price Thoughts of 7.75 per cent and finally tightened to close at 7.125 per cent on the back of robust demand.
“This transaction is the first non-sovereign bond from Africa in 2021 and is milestone capital raise for the banking sector in Nigeria, giving Ecobank access to global debt capital markets, and more favourable credit terms, commensurate with its strong financial position and robust capital structure. For international investors, it represented an attractive option to gain exposure to Nigeria,” it stated.
The Managing Director, Patrick Akinwuntan, stated, “Despite the challenging global (business) environment owing to the Coronavirus Disease, and on the back of a successful N50bn Tier 2 issuance in December 2020, ENG was able to successfully issue and price Nigeria’s first 2021 senior unsecured five-year bond transaction.
“Ecobank Nigeria, through this issuance, is being proactive in optimising its capital structure as it continues to drive its medium term growth strategy of establishing itself as a leading facilitator of pan-Africa and international trade and payments.”
He expressed appreciation to the Central Bank of Nigeria for timely support and continuous guidance, in granting necessary regulatory approvals.
“We believe that our capital raising activities are key steps towards strengthening ENG beyond the regulatory ratios in addition to diversifying ENG’s medium-term financing sources. ENG is poised for continued growth in the Nigerian financial services industry,” the MD added.
