Home / Business / Ecobank obtains $250m loan to boost liquidity

Ecobank obtains $250m loan to boost liquidity


Ecobank Transnational Incorporated has announced that it has obtained a $250m loan facility to boost its liquidity buffers.

According to a statement signed by the Group Chief Financial Officer, Ayo Adepoju, which was filed with the Nigerian Exchange Limited on Monday, the bank said that the loan facility was a senior bridge-to-bond loan facility led by African Export–Import Bank and Africa Finance Corporation to support trade and general corporate purposes.

Adepoju said, “We are very excited about this new facility, which provides additional liquidity buffers for the bank. The firm’s continued ability to demonstrate market support and, in particular, diversify its funding sources under challenging economic conditions reflects the amount of work that has been done in cementing relationships and building credibility in recent years.”

Details of the facility showed that Afreximbank and AFC would be acting as global coordinators and initial mandated lead arrangers to support trade finance and the general corporate purposes of the group, while Mashreqbank psc. joined the transaction as a mandated lead arranger.

According to the pan-African bank, the facility has a tenor of 12 months, with a six-month extension option at the lenders’ discretion.

The bank added that the bridge-to-bond loan also comprises an accordion feature that enables an increase in the total commitments under this facility within a given timeframe.

In December, Ecobank secured a $200m loan to fund its sustainability and climate strategy as well as climate action plan in what was said to be the first of its kind to a sub-Saharan African financial institution.

According to the lender, Proparco, which is the lead arranger of the facility, and the German consulting firm, IPC, would offer advisory support to ETI’s teams to actualise the targets.

Meanwhile, in the bank’s third-quarter results, which were reported in both naira and US dollars, the financial institution said that while its gross earnings went up in naira value, it was down by 15 per cent in US dollar terms to $2.084bn.

Its revenue (operating income) rose by 12 per cent to $1.518bn and up 55 per cent to N884bn.

The financial institution said that the increase in revenue was driven by the net impact of higher interest rates, particularly in Anglophone West Africa and Nigeria, growth in the volume of interest-earning assets, significantly higher fees from treasury services and solutions, and higher cash management fees.

About talkagblog


Check Also

NCAA WARNS airlines flying into RESTRICTED areas

  The Nigeria Civil Aviation Authority has warned airlines flying into restricted ...