Ecobank Transnational Incorporated (ETI) the parent company of the Ecobank Group has received an additional Tier 1 (AT1) investment of $75 million from Arise B.V, a renowned African investment firm.
This is stated in a statement given to the Nigerian Exchange Limited by ETI’s Head of Corporate Communications, Adenike Laoye (NGX).
The new investment complies with Basel III and is Ecobank Transnational Incorporated’s first AT1 instrument, according to the filing.
As a result, the financial behemoth dubbed it “a milestone deal in Sub-Saharan Africa.” The investment will also help the bank optimize and strengthen its Tier 1 capital by $75 million, according to the bank.
This investment comes after ETI issued a $350 million subordinated Sustainability Eurobond in June 2021, which was positively appreciated by international investors from all around the world. Since that time, the Eurobond has been listed as Tier 2 capital on the London Stock Exchange.
Ecobank intends to use the increased funds to meet its general corporate obligations, which include loan growth and the strengthening of profitable subsidiaries’ reserves in two of its primary markets, Francophone West Africa and Anglophone West Africa.
Read more on Tech Gist Africa:
Airtel Africa will sell a 7.5% stake in its mobile money arm to Qatar Investment Authority for $200 million
MTN South Africa has partnered with World Bank’s IFC to expand its Mobile Money business unit, MOMO, with a $2 million investment
Africa Data Centres will invest $500 million in the development of ten data centers across Africa