The board of Ecobank Transnational Incorporated, on Friday told the Nigerian Stock Exchange (NSE) that it successfully raised $400m by way of three tranches of convertible loan facilities.
The debt, due in 2022, will have a coupon, reset semi-annually, equal to three-month US$ LIBOR (London Inter-Bank Offer Rate) plus 6.46% per annum, payable semi-annually in arrears.
While a convertible loan facility of US$250m or 62.5% was arranged through South Africa’s Public Investment Corporation (PIC) and US$140m or 35% was subscribed by Qatar National Bank (QNB), two institutional shareholders; the remaining US$10m convertible notes, was reserved for other shareholders who participated up to US$1.11m.
The remaining balance was subscribed by QNB, bringing its total participation to both the second and third tranches to US$148.89m, bring the second and third tranches of the convertible notes to US$150m, which have been listed on the International Securities Market of the London Stock Exchange (LSE).
The net proceeds of the placement is primarily to refinance maturing debt facilities of the Ecobank Group.
The debt, according to the statement by Mireille Bokpe-Anoumou, the group communications’ head, “will be convertible at the option of the holder of the convertible debt who is also an ETI shareholder into ETI ordinary shares at an exercise price of 6 US Centrs 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 debt will be redeemed at 100% of principal amount if the conversion option is not exercised,” the group explained.
While appreciating their, Ade Adeyemi, Ecobank’s Group chief executive said raising such “significant amount of capital from our shareholders is a testament to the confidence they repose in the company’s long-term growth strategy.”