ETI Group chief executive Ade Ayeyemi. FILE PHOTO | NMG
Kenyan banks’ aggressive regional expansion faces fierce
competition after Ecobank Transnational Incorporated (ETI) tapped Sh50
billion Eurobond cash to strengthen its 33 subsidiaries across Africa.
Speaking
at the London Stock Exchange during the listing of the facility, ETI
Group chief executive Ade Ayeyemi said the funds will be used for
general corporate purposes, including the refinancing of maturing debt
facilities.
“The
successful issuance of our inaugural Eurobond on the main London market
demonstrates international investors’ approval and confidence in
Ecobank’s long-term strategy and prospects as a strong and sustainable
pan-African financial services institution. It also demonstrates the
ability of African corporates to access international capital markets,”
he said.
The ETI Eurobond attracted investors from UK,
USA, Europe, Middle East, Asia and Africa who will enjoy a coupon
interest rate of 9.5 percent per annum payable semi-annually in arrears
during the next five years.
Acting Group chief finance
officer Ayo Adepoju said Ecobank closely monitored its capital
allocation to sustain their business with a view to maintaining
profitability and competitiveness across Africa.
“Our emphasis is to have the right strategic positioning,
competitive advantages, products and resources to increase efficiency
and profitability. Our access to international capital markets are part
of the mix and enable us to boost our liquidity profile, refinance
maturing facilities and strengthen our foundations to ensure long-term
sustainable growth and profitability for all our stakeholders,”he said.
Last
April, Equity Group entered into a preliminary agreement to buy out
banking units in Zambia, Mozambique, Tanzania and Rwanda currently owned
by a London Stock Exchange-listed firm.
This will see
Equity buy out Atlas Mara Limited-owned African Banking Corporation’s
(ABC) operations in Tanzania, Zambia, Mozambique as well as a majority
stake in Banque Populaire du Rwanda (BPR).
On its part KCB Group has announced plans to enter Somalia and the DR Congo as well s Ethiopia.
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