Ecobank Transnational Incorporated (ETI) has secured a $285m senior unsecured loan facility from Deutsche Bank AB, Punch reports.
The Nigerian Stock Exchange stated in its weekly report that the ETI notified it last week that it had received the one-year senior unsecured loan facility.
The Exchange also stated Ecobank notified it that it had appointed Deutsche Bank to be the initial mandated lead arranger, book-runner and facility agent, together with a syndicate of international banks to arrange the ficing.
“Deutsche Bank has successfully closed primary syndication with an over-subscribed order book. The final size of the facility was maintained at $285,000,000,” the Exchange stated.
“ETI stated that it worked with Deutsche Bank on this transaction in view of the latter’s strong distribution platform and rapid execution capabilities. ETI will use the loan facility to refice existing loans.”
ETI, the parent company of Ecobank Nigeria, had stated in June that it would sell a stake in the subsidiary by end of 2015 to boost the Nigerian unit’s capital.
Its Chief Executive Officer at the time, Mr. Albert Essien, had disclosed the plan without specifying how much the lender was planning to raise in an interview in Cape Town at the World Economic Forum on Africa, Bloomberg had reported.
Ecobank Nigeria is ETI’s biggest subsidiary with $9.4bn of assets. ETI, whose largest shareholders are Johannesburg-based Nedbank Group Limited and Qatar National Bank SAQ, owns all of Ecobank Nigeria.
“It will be up to Ecobank’s shareholders if they want to buy equity in the Nigerian business,” Essien had stated.
ETI had also in June announced the appointment of Mr. Ade Adeyemi as its new Group Chief Executive Officer, effective September 1.
The bank had described Adeyemi, 52, as a highly experienced banker with a long and successful career with Citigroup.