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Ecobank Nigeria sells $200m in notes for capital


News » Health and Beauty
Nigeria

August.08.2014

Ecobank Transnational Inc’s unit in Nigeria sold $200m of dated subordinated notes due in 2021 to join lenders in Nigeria raising funds through debt sales, Bloomberg News reported on Thursday.

The issuance has a yield of nine per cent and a coupon of 8.75 per cent, according to information from a person with knowledge of the offering, who asked not to be identified because they weren’t authorised to speak publicly. Deutsche Bank AG and Standard Chartered Plc were the lead managers.

The notes are expected to be eligible as Tier 2 capital by the Central Bank of Nigeria, according to the person.

A spokesman for Ecobank, Austin Osokpo, didn’t immediately respond to questions he requested be sent by e-mail. Access Bank Plc sold $400m of subordinated notes in June with the yield falling 80 basis points since they were issued to 8.7 per cent by 2:46 p.m. in Lagos. First Bank of Nigeria sold $450m of bonds on July 18.

The banks are raising money to help fund power, oil exploration and manufacturing projects in Nigeria, Africa’s biggest crude producer. Ecobank Transnational, a lender based in the Togolese capital of Lome that operates in 36 African countries, said net income rose 15 per cent to $194 million for the six months through June.

The stock rose 4.62 per cent to 18.33 naira on Thursday, adding to its 13 per cent advance this year. The 195-member Nigerian Stock Exchange All Share Index has gained 3.1 per cent in 2014. Ecobank’s Nigeria unit isn’t listed on the bourse.

Article Credit: Punchng

Updated 3 Years ago
 

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Tags:     Ecobank Transnational Inc     Austin Osokpo     Standard Chartered Plc     Access Bank Plc     First Bank    

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