March 12, (THEWILL)- Ecobank Transnational Incorporated (ETI) has signed a $250 million senior unsecured bridge-to-bond loan facility, with African Export-Import Bank (Afreximbank) and Africa Finance Corporation (AFC) serving as the Global Coordinators and Initial Mandated Lead Arrangers.
The purpose of the loan is to support trade finance and fulfil the general corporate needs of ETI.
This information was contained in a disclosure on /the NGX website, signed by the Group’s Chief Financial Officer, Ayo Adepoju.
Emirati bank, Mashreqbank psc is also acknowledged as a Mandated Lead Arranger for the loan facility in the statement.
According to the statement, the bridge-to-bond loan also incorporates an accordion feature, allowing for an expansion of total commitments within a specified period under this facility. In simpler terms, the borrower (Ecobank) can access additional funds if needed, with the terms of the loans providing flexibility to adjust to changing financial requirements or opportunities during the loan’s term.
Speaking on the loan facility, the CFO of Ecobank, Ayo Adepoju noted,
“We are very excited about this new facility, which provides additional liquidity buffers for the bank.
“The firm’s continued ability to demonstrate market support and, in particular, diversify its funding sources under challenging economic conditions reflects the amount of work that has been done in cementing relationships and building credibility in recent years.”
The facility spans twelve months initially, with tmonth extension at the discretion of the lenders.
About the Author
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
