Ecobank successfully repays $500 million Eurobond due April 18.

Ecobank successfully repays $500 million Eurobond due April 18.

Ecobank Transnational Incorporated has successfully repaid its $500 million 5-year Eurobond that matured on April 18, 2024.

The Eurobond, which was issued in April 2019, was listed on the London Stock Exchange with a coupon rate of 9.5%. The bond garnered support from diverse group of global investors, including development banks, FMOsand Proparco, who served as anchor investors.

The repayment, totalling $524 million, inclusive of principal and interest, was distributed to bondholders through the transaction agent on the specified maturity date.

Speaking on the repayment, Ecobank’s Group CFO, Ayo Adepoju, noted,

“This inaugural bond we are retiring today was critical in introducing our firm to a wider array of global investors and contributed to the increased visibility of our brand in the capital markets. When viewed against the backdrop of the difficult operating environment that characterized most of 2023 and is still being felt today, particularly the disruptions in the world supply chain and global financial markets, the Group continues to show resilience through strong liquidity, a robust balance sheet, and a solid leadership team.”

What you should know
The $500 million Eurobond which has been repaid is Ecobank’s inaugural bond to be listed on the London Stock Exchange. However, the group’s first bond issuance was in 2014, when it issued a $200 million bond that was listed on the Irish stock exchange.

In 2021, Ecobank also issued a $300 million 5-year bond at a fixed coupon rate of 7.125%. This bond, which will mature in 2026, is also listed on the London Stock Exchange.