Ecobank Zambia issues $500m Eurobond

ECOBANK Zambia has successfully issued a $500 million Eurobond on the London Stock Exchange to help operations across the country.

Ecobank Zambia managing director Kola Adeleke said the bond was oversubscribed with strong demand from international investors in the United Kingdom, United States, Europe, Middle East, Asia and Africa.

“It follows on from Ecobank’s 2017 convertible bond issuance on the international securities market,” he said.

He was speaking in Lusaka yesterday.

Mr Adeleke said the five- year senior unsecured notes, which mature in April 2024, were launched with a coupon interest rate of 9.50 percent per annum payable semi-annually in arrears.

He said Ecobank placed emphasis on constantly reviewing the capital allocation strategies to ensure that the company had the right positioning, competitive advantages, products and resources to increase efficiency and profitability.

“Our access to international capital markets are Part of the Mix and enable us to boost our Liquidity profile, refinance facilities and strengthen our foundation to ensure long-term sustainable growth and profitability for all our stakeholders,” he said

And Ecobank chief executive officer Ade Ayeyemi said the successful issuance of the inaugural Eurobond on the main London market demonstrated international investors’ approval and confidence in Ecobank’s long- term strategy as a sustainable pan-African financial services institution.