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Ecobank Nigeria’s bond sale shows African corporate debt markets open for business

By Ray Mwareya, Nyasha Bhobo

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Posted on February 25, 2021 15:23

 © Ecobank Nigeria managing director Patrick
Akinwuntan. Photo supplied.
Ecobank Nigeria managing director Patrick Akinwuntan. Photo supplied.

Africa’s first non-sovereign bond of 2021 shows that prospects for Nigeria’s economic growth can pull in investors, Ecobank Nigeria managing director Patrick Akinwuntan tells The Africa Report.

The bank last week priced its $300m London-listed bond maturing in February 2026. The issue was more than three times oversubscribed and drew “significant” international interest, says Akinwuntan.

“The strength and depth of the book demonstrated global investors’ strong appetite for the Ecobank franchise in Nigeria.”

The sale shows that appetite for corporate African debt has survived the Zambia sovereign debt default in November 2020.

Ecobank Nigeria is the largest single-country operation of the Ecobank Group, which operates in 33 African countries.

The Africa Continental Free Trade Agreement (AfCFTA), which came into effect at the start of January, gives Ecobank the opportunity to become a Nigerian leader for pan-Africa and global trade and payments, says Akinwuntan.

Bond bounty

The bond will be used to provide “stable medium-term funding for our pan-Africa and international trade

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