Banking Briefs
SHAREHOLDERS of Ecobank Transnational Incorporated, ETI, Plc has authorised the board of the financial services group to raise up to $400 million through a convertible bond issue. At the annual general meeting and extraordinary general meeting held in Lomé, Togo, shareholders voted in support of the convertible bond issue, which will be undertaken by way of rights issue.
As a rights issue, the units will be pre-allotted to shareholders on the basis of their existing shareholdings. As a convertible bond, it means shareholders can exchange the bond unit for other instrument or cash. The convertible bond issue will have a maturity of five years and a coupon of 6.46 per cent 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.
The net proceeds of the $400 million bond issue 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. Emmanuel Ikazoboh, chairman, ETI Plc, said the support for the bond issue showed shareholders’ confidence in the future of Ecobank.
“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,” Ikazoboh said.
— Jul 03, 2017 @ 01:00 GMT
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