December 1, 2015/Ecobank

Ecobank Nigeria Limited, a subsidiary of Togo-based Ecobank Transnational Incorporated, parent company of the pan-African Ecobank Group, is pleased to announce the successful signing of a US$170 million term loan facility. Commerzbank Aktiengesellschaft, Filiale Luxemburg, First Gulf Bank PJSC, Mashreqbank psc and Standard Chartered Bank acted as mandated lead arrangers and bookrunners. African Export-Import Bank has acted as mandated lead arranger; Standard Chartered also acted as sole co-ordinator bank and documentation agent; and Mashreqbank psc acted as facility agent. The facility will be used for refinancing Ecobank Nigeria’s inaugural US$150 million syndicated loan facility dated 23 October 2014, which was raised for general lending and trade purposes. 

Despite adverse market conditions due to the macroeconomic headwinds affecting Nigeria, the facility has seen an excellent response from both existing and new lenders to Ecobank.  The transaction is only the second to have come to the market for a Nigerian financial institution this year.  Its success demonstrates the high regard in which the market holds the Ecobank Nigeria management and it values Ecobank’s ability to navigate the current domestic circumstances as one of Nigeria’s top-tier banks.

Ecobank Nigeria is among the eight financial institutions considered systemically important banks (SIBs) by the country’s Central Bank (“CBN”).  As a market leader, Ecobank offers a wide range of financial services and products to corporate and retail customers throughout Nigeria with a customer base of over seven million people. It is listed on the Lagos, Accra and Abidjan (BRVM) stock exchanges.

The success of the transaction is a testament to Ecobank’s strong brand recognition and to its management’s focus on building international banking relationships for the long term.  The transaction’s support from a wide variety of lenders from Europe, Africa, Asia and the Middle East demonstrates a growing appetite for top-tier African issuers in the international syndicated loan market.

Ecobank Nigeria’s Managing Director, Mr. Jibril Aku said the bank was delighted with the deal: “The transaction is driven by a need to have longer-term funding available for corporate clients,” he said. He added: “We appreciate the confidence that the international markets have in Ecobank Nigeria, backed by our strong reputation in the country and across the African continent. It proves that our strategy works.”

Foluke Aboderin, Head, Corporate Banking at Ecobank Nigeria, said: “We are delighted with the response and the number of correspondent banks that showed interest. This new loan demonstrates Ecobank’s continued commitment to supporting Nigeria’s economic growth, even during challenging economic times.”