Ecobank Transnational Incorporated (ETI) has launched a $250 million Additional Tier 1 (AT1) capital raise through a private placement of contingent convertible notes, as the pan-African banking group moves to strengthen its balance sheet and support long-term growth across more than 30 African markets.
In a statement on Wednesday, the group said the transaction follows shareholders’ approval at an Extraordinary General Meeting held in Lomé, Togo, on May 28, 2025.
Renaissance Capital Africa has been appointed as transaction adviser for the 10-day issuance window, which opened on July 9.
The AT1 instrument qualifies as Basel III-compliant capital and is structured to provide a buffer in times of financial stress, without diluting shareholder equity. The group said the capital raise is part of a broader strategy to enhance capital adequacy, improve financial resilience, and optimise its funding mix amid tightening global financial conditions and increased macroeconomic volatility.
“This transaction represents a strategic milestone in Ecobank’s journey to remain one of Africa’s most capital-efficient and resilient banking institutions,” the group said in the statement.
The move comes as more emerging market lenders seek flexible, loss-absorbing capital instruments to navigate rising credit risks and currency instability. Proceeds from the raise are expected to improve the bank’s Tier 1 capital ratio, enabling it to support larger transactions, expand credit to key sectors, and cushion against external shocks.
ETI, the parent company of the Ecobank bank, is listed on the Nigerian Exchange Limited, Ghana Stock Exchange, and the Bourse Régionale des Valeurs Mobilières (BRVM) in Côte d’Ivoire. The bank stressed that the announcement is not an offer or solicitation to the general public.
Builds on successful May tap of $400 million notes
The new issuance follows the group’s successful $125 million tap in May of its $400 million 10.125% notes due 2029. The notes were priced at a premium of 102.634 to yield 9.375%, tightening 100 basis points compared to the original issue. Investor demand was robust, with the order book oversubscribed more than two times and strong interest from asset managers, banks, and DFIs across Africa, the UK, Europe, the U.S., Asia, and the Middle East.
“We are encouraged by the strong support from international investors, which underscores their continued belief in Ecobank’s resilience and our Growth, Transformation and Returns (GTR) strategy,” said Jeremy Awori, ETI group CEO.
Earnings momentum in Q1 2025
The group reported a 17% year-on-year rise in profit before tax to $175 million in the first quarter (Q1) of 2025, compared to $150 million in the same period of 2024. Revenue rose 4% to $516 million—or 13% in constant currency—driven by steady growth in fee and commission income.
Cost discipline initiatives led to a 0.1% decline in expenses and a record cost-to-income ratio of 51.6%. Customer deposits grew 12% (18% in constant currency) to $21.5 billion, reflecting sustained client confidence and an effective deposit mobilisation strategy.
“In Q1, we continued to build momentum in implementing our GTR strategy, based on strong foundations laid in 2024,” Awori said. “We’ve strategically revised our operating models to focus on the essentials for success in each market.”
