Source Thisday Newspapers
The ability of the Ecobank Transnational Incorporated (ETI), the Lome-based parent company of the Ecobank Group, to do more business and generate more revenue has been boosted as the bank received $200 million senior unsecured loan facility from Deutsche Bank AG.
ETI yesterday notified the Nigerian Stock Exchange (NSE) that it had last month appointed Deutsche Bank to initial lead arranger, book runner and facility agent to arrange the facility. According to the ETI, less than one month, Deutsche Bank successfully closed primary syndication with an oversubscribed order book of $230 million.
“The final size of the facility was maintained at $200 million. This transaction reflects Deutsche Bank’s strong distribution platform and rapid execution capabilities in challenging market conditions. The facility will be used for general corporate purposes,” ETI said.
The $200 million facility is coming on the heels of $150million term loan facility ETI’s subsidiary, Ecobank Nigeria Limited, got from a consortium of banks last month. The banks included: Standard Chartered Bank, Commerzbank, Mashreq and First Gulf Bank PJSC
The $150 million one year term loan marked Ecobank’s debut in the international loan market and laid the groundwork for future fundraising on a broader basis.
According to the bank, the facility that would be used for general, generated strong interest from the market, resulting in the being 50 per cent oversubscribed , increasing from its original $100 million launch amount.
Speaking on the transaction, Managing Director of Ecobank Nigeria, Mr. Jibril Aku, had said:“This transaction broadens and strengthens Ecobank Nigeria’s base of lending banks. We are particularly encouraged by the response of the international markets, as it reflects confidence in our long-term growth plans.”
Speaking in the same vein, Executive Director, Corporate Bank, Ecobank Nigeria, Ms. Foluke Aboderin said: “Ecobank Nigeria is very active in the financing of large-ticket transactions in telecoms, oil and gas and heavy industry. This facility will help to fund a number of transactions in these key sectors of Nigeria’s dynamic economy.”
Established in 1986 and with approximately $10 billion in assets today, Ecobank Nigeria ranks as one of the country’s top six banks. The company operates as a subsidiary of ETI, that has over 1,200 branches and offices in 36 countries in West, Central, East and Southern Africa, as well as in London, Paris, Dubai and Beijing. ETI is listed on the Nigerian, Ghana and Abidjan (BRVM) stock exchanges.
Ecobank Nigeria is a full-service bank, providing wholesale, retail, corporate, investment and transaction banking services to government, financial institutions, multinationals, international organisations, medium, small and micro businesses and individuals.