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Ecobank shareholders approve $600m additional capital raise

The shareholders of Ecobank Transnational Incorporated have given their approval for it to raise N600m in fresh capital raise within one year.

This was revealed in the resolutions adopted at the 36th annual general meeting and extraordinary general meeting of the bank held in Lome, Togo, which was filed with the Nigerian Exchange Limited on Thursday.

The bank’s board of directors also appointed Madiaw Ndiaye as the company’s new chairman, succeeding Alain Nkontchou, who has completed this term in office.

During the EGM, the shareholders  “authorised the board of directors to raise within a period of one year from the date of this meeting up to six hundred million United States dollars (US$600,000,000) in senior-ranked debt, Tier 2-qualifying subordinated debt or a combination of these forms of instruments as the board of directors may deem appropriate.”

Also, shareholders applauded the group’s strong performance in 2023 with its net revenues exceeding the $2bn mark for the first time in nearly 10 years.

In 2023, ETI saw its profit before tax rise by eight per cent to $581m from $540m in 2022.

Commenting on the performance of the banking group in 2023, the Chief Executive Officer, Jeremy Awori, said, “Ecobank delivered a strong performance in 2023, demonstrating the competitive advantages of our resilient, diversified business model and the early results of our new Growth, Transformation and Returns strategy.

“We demonstrated financial prudence by carefully managing our shareholders’ capital, ensuring customer satisfaction at every touchpoint, and making informed decisions about pricing our assets and liabilities. We are confident that our strategy is paving the way for our continued success and growth.”

After his appointment, the new chairman, Ndiaye said, “I have long admired Ecobank Group’s successful development across Africa, and I am looking forward to working with Jeremy and ETI’s board to steer the bank through the next and exciting phase of its journey.

“With its strong foundation and numerous competitive advantages, I see Ecobank as strongly positioned to accelerate its growth trajectory and play an even greater role in driving the continent’s economic development in this era of rapid technological changes.”

Ndiaye is the chief executive officer and founding partner of AFIG Funds, a leading private equity fund management company focused on Africa.

He has a proven track record of leadership and the creation of shareholder value and a deep commitment to Ecobank’s mission and strategic agenda.

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