Ecobank raises $400m convertible debt placement from shareholders

Ecobank Transnational Incorporated (ETI) , the parent company of the Ecobank Group has successfully placed $400 million convertible debt.
The convertible debt according to the bank was structured in three tranches. The first, a convertible loan facility of $ 250 million, was arranged through public investment corporation (PIC) of South Africa, an institutional shareholder. The second tranche was consisting of $140 million convertible notes was fully subscribed to by Qatar National Bank (QNB), also an institutional shareholders.
The Bank said that the third tranche of $ 10 million convertible notes, was reserved to shareholders other than the institutional shareholders who participated up to $ 1.11 million. The remaining balance was subscribed by QNB, bringing QNB total participation to both the second and third tranches to $ 148.89 million.
The second and third tranches of the convertible notes, amounting to a total of $150 million has been listed on the International Securities market (ISM) of the London Stock Exchange (LSE) . The convertible debt due 2022 will have a coupon, reset semi annually, equal to 3-month USD LIBOR plus 6.46 per cent per annual, payable semi-detached annually in arrears. The debt will be convertible at the option of the holder of the convertible debt who is also an ETI shareholder into ordinary shares at an exercise price of 6 US cents during the conversion period of 19 October 2019 to 13 October 2022 upon the occurrence of a change of control in accordance with the terms of the convertible debt. The bank said that the debt will be redeemed at 110 per cent of principal amount of the conversion option is not exercise.
ETI said it will use the net proceeds of the placement to primarily refinance maturing debt facilities.
Ecobank Group Chief Executive, Ade Adeyemi said the firm’s ability to raise this significant amount of capital from our shareholders is a testament to the confidence they repose in the company’s long term growth strategy,. We want to thank all our shareholders for their tremendous support.”