Ecobank Transnational Incorporated, the Ecobank Group’s parent business, has announced that it has raised $350 million in Tier 2 Sustainability Notes.
According to a statement issued by ETI on Friday, the bond was more than three times oversubscribed by investors.
“This represents the first-ever Tier 2 Sustainability Notes by a financial institution in Sub-Saharan Africa,” it said.
According to the announcement, the Tier 2 issuance will be the first outside of South Africa to have a Basel III-compliant 10NC5 structure in 144A/RegS format and will be listed on the London Stock Exchange’s main market.
“The bond, which matures in June 2031 and has a call option in June 2026, was issued with an 8.75 percent coupon and interest paid semi-annually in arrears,” it said.
“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.”
Investor interest in this sophomore Eurobond issuance was global, according to ETI, with interest from the United Kingdom, the United States, Europe, the Middle East, Asia, and Africa, with a 3.6x oversubscribed orderbook of over $1.3 billion at its height.
“This is 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,” said Ade Ayeyemi, Group Chief Executive Officer of ETI.
“We are particularly pleased with the diverse orderbook which reflects the confidence investors have in Ecobank to deliver on our commitment to sustainable financing.”