×
NewsDay

AMH is an independent media house free from political ties or outside influence. We have four newspapers: The Zimbabwe Independent, a business weekly published every Friday, The Standard, a weekly published every Sunday, and Southern and NewsDay, our daily newspapers. Each has an online edition.

Ecobank approves $400m in convertible bonds

Business
ECOBANK Transnational Incorporated (ETI), the parent company of the Ecobank Group has approved the issue of up to $400 million in convertible bonds.

ECOBANK Transnational Incorporated (ETI), the parent company of the Ecobank Group has approved the issue of up to $400 million in convertible bonds.

BY BUSINESS REPORTER

The group said the convertible bond issue will have a maturity of five years and a coupon of 6,46% above three-month LIBOR, with an option to convert at an exercise price of 6 US cents during the conversion period.

The bonds will be on offer to all Ecobank shareholders on identical terms shortly.

Ecobank is an independent pan-African banking group and currently has a presence in 33 African countries including Zimbabwe. As of January 2012 the bank maintains a network of nine operational branches in the country.

The group said in a statement proceeds have been earmarked to repay the bridging finance required to create a Resolution Vehicle to manage Ecobank’s legacy loan portfolio and to optimise the maturities of the group’s debt portfolio.

“We are delighted with the strength of the support shown for the issue by our existing shareholders, as it vindicates the vigorous action taken to address our challenged legacy assets, as well as indicating their confidence in Ecobank’s future,” Ecobank’s Group chairman, Emmanuel Ikazaboh said at the 29th Annual General Meeting and Extraordinary General Meeting, held in Lomé.

“Nevertheless, it is a matter of great regret that the Board was unable to recommend the payment of a dividend in respect of 2016,” he continued. “Ecobank’s senior management is united in its firm resolve to work urgently, yet diligently, to reinstate cash dividends as soon as ETI’s financial position permits.”

Commenting on Ecobank’s recent performance, Ade Ayeyemi, group CEO, said despite continued macroeconomic challenges in some parts of the continent, all of businesses were making meaningful progress, with an ongoing focus on cost discipline, stringent credit control and the increasing digitisation of our services to enhance the customer experience.

“We are proactively resolving our legacy loan issues, achieving $2 million of recoveries from the Resolution Vehicle in the first quarter of 2017. I am confident that these positive developments will be reflected in an improving performance from Ecobank going forward,” Ayeyemi said.

According to the statement , the group employs over 17 500 people in 36 different countries in over 1 200 branches and offices. Ecobank is a full-service bank providing wholesale, retail, investment and transaction banking services and products to governments, financial institutions, multinationals, international organisations, medium, small and micro businesses and individuals.