London Stock Exchange Lists Ecobank $350m Sustainability Bond – The $350 million sustainability bond issued by Ecobank Transnational Incorporated (ETI), the parent company of the Ecobank Group, has been listed on the main market of the London Stock Exchange (LSE).
The green bond was admitted on the LSE on Wednesday at a virtual ceremony to open the market for the trading day and celebrate the successful listing of the tier-2 environment-friendly notes, the first by a financial institution in Sub-Saharan Africa.
The bond, which matures in June 2031, has a call option in June 2026 and was issued with a coupon of 8.75 per cent with interest payable semi-annually in arrears.
An equivalent amount of the net proceeds from the notes will be used by Ecobank to finance or refinance new or existing eligible assets as described in the bank’s Sustainable Finance Framework.
The tier-2 issuance is the first to have a Basel III-compliant 10NC5 structure outside of South Africa in 144A/RegS format.
It was gathered that investor interest for this sophomore Eurobond issue was global, including the United Kingdom, the United States, Europe, the Middle East, Asia and Africa, achieving a 3.6x oversubscribed order book of over $1.3 billion at its peak.
The joint lead managers and book runners in the transaction were Citi, Mashreq, Renaissance Capital and Standard Chartered Bank.
“The strong global interest in our issuance reflects investors’ confidence in Ecobank’s strategy and our commitment to sustainable financing.
“We thank the LSE for hosting ETI today and look forward to value creation for all our stakeholders,” the Group CEO of Ecobank, Mr Ade Ayeyemi, said.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Financial Watch. Every investment and trading move involves risk. You should conduct your own research when making a decision.
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