ETI raises $138bn via debut Eurobond

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Ecobank Transnational Incorporated(ETI) the Lomé-based parent company of the Ecobank Group, is pleased to announce that it has successfully raised N138 billion or $450 million (equivalent of N306.95/$) in its debut Eurobond which was oversubscribed.

Early in the year, Nigerian NewsDirect had predicted that the ETI, among other banks operating in the country are expected to raise fresh capital over weak capital base.

However, the Global Offering for the capital is a 5-year unsecured note (144A/RegS) listed on the main market of the London Stock Exchange. The bond matures in April 2024 and was issued with a coupon pricing of 9.5% with interest payable semi-annually in arrears.

The proceeds will be used for ETI’s general corporate purposes and to refinance existing Holdco obligations.

Investor interest was global, including United Kingdom, United States, Europe, the Middle East, Asia, and Africa.

On this debut Eurobond issuance, Group Chief Executive Officer of ETI Mr. Ade Ayeyemi, in a statement said, “This is another first for Ecobank and I’m very excited at the prospects for the Group as we continue the second phase of our 5-year ‘Roadmap to leadership’ strategy.

“Our efforts toward greater operational and capital efficiency are paying off, and this offer is another example of the measures we are taking to strengthen our institution and deliver value for all of our stakeholders.”

The Group Chief Financial Officer, Mr. Greg Davis, also commenting on this Eurobond said, “The success of this Eurobond reflects appetite from high quality and real money institutional investors globally and the trust that continues to be conferred on our institution and the markets we have chosen to participate in.”

The group  reported 53 per cent increase in Profit Before Tax (PBT) to N135.5 billion in 2018 financial year results.

The pan-African financial institution had reported N88.3 billion PBT in 2017 financial year.

According to the audited result and accounts of 2018, the lender reported 46 per cent increase in profit to N102.2 billion as against N69 billion despite reporting one per cent increase in gross earnings to N773.3 billion in 2018 as against N763.6 billion reported in 2017.

The group operating profit before impairment losses rose by two per cent to N218 billion as against N214.28 billion reported in 2017.

From the balance sheet position, total assets rose by 20 per cent to N8.2trillion from N6.86 trillion reported in 2017, driven by 25 per cent and 17 per cent increase in deposits from customers and loans and advances to customers respectively.

Loans and advances to customers moved from N2.86 trillion in 2017 to N3.33 trillion in 2018 while deposits from customers closed 2018 at N5.8 trillion from N4.65 trillion.

Ayeyemi had said, “Our financial performance in 2018 was remarkable in many ways and reflected the meaningful and significant progress that we have made against the priorities that we set in our ‘Roadmap to Leadership’ strategy.

“We delivered a 51per cent growth in profit before tax to $436 million and generated a return on tangible equity of 21per cent. Our cost-of-risk of 2.4 per cent was an improvement on 2017 and demonstrated the progress that we have made addressing credit quality issues and enhancing internal control processes.”

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