Ecobank Transnational Incorporated (ETI), has signed 250 million dollars senior unsecured bridge-to-bond loan facility with the African Export-Import Bank (Afreximbank) and Africa Finance Corporation (AFC).
Group Chief Financial Officer, ETI, Dr Ayo Adepoju, announced this in a notification to the Nigerian Exchange Ltd.(NGX) on Monday in Lagos.
Adepoju said that Afreximbank and AFC would act as Global Coordinators and Initial Mandated Lead Arrangers to support trade finance and the general corporate purposes of the group.
He stated that Mashreq Bank psc. also joined the transaction as a Mandated Lead Arranger.
According to him, the facility has a tenor of 12 months, with a six-month extension option at the lenders’ discretion.
Adepoju said: ”The bridge-to-bond loan also comprises an accordion feature that enables an increase in the total commitments under the facility within a given timeframe.
“We are very excited about this new facility, which provides additional liquidity buffers for the bank.
The CFO noted that the firm had continuously demonstrated market support and, in particular, diversify its funding sources under challenging economic conditions.
Adepoju said this reflected the amount of work that had been done in cementing relationships and building credibility in recent years.
The News Agency of Nigeria (NAN) reports that Bridge-to-bond loans are short-term financing solutions.
It serves as a bridge between a company’s immediate funding needs and its long-term financing plans, typically in the form of issuing bonds.
The loans also provide interim financing for companies to meet urgent financial requirements while they prepare for longer-term capital-raising activities, such as issuing bonds.
Ecobank Group is a private pan-African banking group with unrivalled African expertise and present in 35 sub-Saharan African countries, as well as France, UK, UAE and China.
The group employs over 15,000 people and offers consumer, commercial, corporate and investment banking products, services and solutions across multiple channels including digital, to over 32 million customers. (NAN)
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