S&P Global, Fitch assign Ecobank Nigeria’s $300m senior unsecured loan notes ‘B-’ Rating
…as Group signs remittance partnership with Small World Financial Services
S&P Global Ratings and Fitch on Wednesday assigned its ‘B-’ long-term issue rating to the $300 million senior unsecured loan participation notes (LPNs), at a coupon of 7.125% per year, issued by Nigeria-based Ecobank Nigeria Ltd.
According to S & P global ratings, “We rate ENG’s U.S. dollar-denominated senior unsecured LPNs at the same level as our long-term issuer credit rating on ENG. This is based on our conclusion that the LPNs meet all conditions regarding issuance by special-purpose vehicles (SPVs) set out in our group rating methodology.
“Specifically, we rate LPNs issued by an SPV at the same level as we would rate equivalent-ranking debt of the underlying borrower (the sponsor) and treat the contractual obligations of the SPV as financial obligations of the sponsor if the following conditions are met:
“All of the SPV’s debt obligations are backed by equivalent-ranking obligations with equivalent payment terms issued by the sponsor;
The SPV is a strategic financing entity for the sponsor set up solely to raise debt on behalf of the sponsor’s group; and
“We believe the sponsor is willing and able to support the SPV to ensure full and timely payment of interest and principal on the debt issued by the SPV when it is due, including payment of any of the SPV’s expenses.”
Fitch Ratings on its part said, “The proceeds of the senior notes will be used by ENG for general-banking purposes, including providing the bank with stable medium-term funding.
“The final rating is in line with the expected rating that Fitch assigned to the notes on February 10, 2021.”
However, Ecobank Group on Wednesday said it signed a remittance partnership with small world financial services.
Leading international money transfer provider Small World Financial Services (Small World), has signed a partnership with Ecobank -the leading Pan-African banking group, based in Lomé, Togo.
The agreement brings the strengths and assets of both organisations to offer money transfer services to Africans in the diaspora.
This is an exciting development for both Small World and the Ecobank Group as Small World can continue to grow its global customer base as well as its 250,000 pick-up locations, while Ecobank, with its footprint across 33 African countries can further expand its remittance reach within African communities across Europe and other parts of the world. Small World customers will be able to access the unparalleled Ecobank Africa-wide network in three ways: Direct transfer to Bank accounts, mobile wallet; and cash pick up at any Ecobank location.
This partnership will further financial inclusion in Africa as Ecobank will make available the Ecobank Xpress Account (a mobile based bank account developed for the unbanked and under-banked) for the recipients of remittances sent by Small World Financial Services’ customers.
Nick Day, Chief Executive and Founder of Small World, said, “We are delighted to be forging a partnership with Ecobank.
“It is a leading bank in Africa with over 50,000 locations in the region which means our global customers get access to even more ways to send money home to African countries. Importantly, Ecobank shares our commitment in delivering great customer service alongside providing fast, affordable and reliable transfers.
Nana Araba Abban, Ecobank Group Consumer Banking Head, added: “We’re proud to offer seamless payments across our vast borderless network in Africa. At Ecobank, we value partnerships, such as this, that enable Africans in the diaspora to remit money affordably and conveniently.
“This provides a win-win partnership as Ecobank can offer banking services to Africans wherever they are on the globe. Ecobank shares Small World’s commitment of making financial services seamless, convenient, and interoperable across Africa.”
