ETI Shareholders Approve $500m Capital Raising Exercise

The shareholders of Ecobank Transnational Incorporated (ETI), yesterday in Togo approved the management’s plans to raise $500million senior-ranked debt in the international market.

The shareholders of the Pan-African financial institution at Extra Ordinary General Meeting (EGM) approved the resolution authorising to raise senior-ranked debt, and additional Tier 1, Tier 2-qualifying subordinated debt.

Earlier, shareholders at the 35th Annual General Meeting (AGM) also approved $28million dividend payout for full financial year ended December 31, 2022, an equivalent of 0.11 cents per ordinary share.

The Ecobank Group Chairman, Alain Nkontchou at the EGM said the board approved the loan to refinance an existing loan that is due in 2024, stressing that market conditions would determine when to raise the capital this year.

While speaking to shareholders, he expressed that Ecobank is a powerhouse in the African banking landscape and is positioned to support and facilitate the growth and development of African businesses as it grasps the immense single-market opportunities created by the African Continental Free Trade Area.

“Quite simply, Ecobank is the solution for SMEs and corporates. The strength of our borderless payment, collection, working capital and financing solutions exemplifies this,” he said.

On outlook, he expressed that, “As we progress into 2023, we are excited about the opportunities for our organization, though we recognize that the operating environment remains challenging.

Despite the ongoing uncertainty caused by the consequences of the war in Ukraine and the inflationary pressure, in various economies where we operate, we remain confident in our ability to adopt and succeed.

“Our focus this year will be on accelerating our growth, reinforcing and streamlining the internal processes and leveraging on our technology platforms.”

The Chief Executive Officer, Ecobank Group, Jeremy Awori said, “In 2022, Ecobank demonstrated strong financial results and performance, despite the challenging economic conditions of high-interest rates, inflation, and Ghana’s debt restructuring.

“This success can be attributed to the bank’s diversified business model, digital expertise, innovative approaches, growth momentum, and efficiency.