Following shareholder approval at its Extraordinary General Meeting on May 28, 2025, in Lomé, Ecobank Transnational Incorporated (ETI), the parent company of the Ecobank Group, formally launched its $250 million Additional Tier 1 (AT1) capital issuance.
The private placement of contingent convertible notes will be used to raise capital over 10 days, starting on July 9. ETI claims that this strategic initiative aims to support long-term growth throughout its pan-African banking operations, strengthen the group’s financial resilience, and bolster its capital adequacy.
The appointment of Renaissance Capital Africa as the issuance’s transaction adviser was confirmed by Company Secretary Madibinet Cisse, demonstrating ETI’s dedication to utilising top-tier financial knowledge. He said: “This initiative marks an important milestone in our journey to sustainably grow the Ecobank Group and deepen our resilience across diverse markets.”
Continuing, financial institutions generally use Additional Tier 1 (AT1) capital instruments to increase their regulatory capital without reducing equity ownership. This category is recognised under Basel III regulations.
BrandSpur banking and finance news reports that the announcement, ETI stressed, does not amount to a solicitation for the public to buy any of its financial instruments or an offer of securities for sale. The issuance is only being carried out through private placement. In anticipation of stricter regulatory requirements and the expected expansion of regional banking integration, several African banks are fortifying their capital bases at the time of the move.
On June 26, 2025, ETI previously revealed that the AT1 instruments would be made available for subscription in tiers: Only a maximum of 100 shareholders will be given first priority, and they will be chosen in order of arrival. Subject to availability, additional interested investors will be given second priority.
Concerning pricing mechanisms, ETI observed: “The conversion price of the AT1 instrument shall be the higher of the 5-day Volume Weighted Average Price (VWAP) on the NGX at the time of conversion, converted to U.S. dollars using the prevailing exchange rate or a floor price of $0.01 per ordinary share.”
