Ecobank Secures $250 Million Loan Facility from Afreximbank and AFC for Trade Finance and Corporate Growth

Ecobank Transnational Incorporated (ETI) has signed a $250 million senior unsecured bridge-to-bond loan facility with the African Export-Import Bank (Afreximbank) and Africa Finance Corporation (AFC).

The loan, which has a tenor of twelve months with a six-month extension option, will support trade finance and the general corporate purposes of the group.

This transaction showcases the collaboration between leading financial institutions in Africa, with Afreximbank and AFC acting as global coordinators and initial mandated lead arrangers.

Mashreqbank psc. joined the transaction as a mandated lead arranger.

The bridge-to-bond loan facility also includes an accordion feature, which allows for an increase in total commitments within a given timeframe.

Ecobank’s Group CFO, Ayo Adepoju, expressed excitement about the new facility, stating that it provides additional liquidity buffers for the bank.

He emphasized that the firm’s ability to demonstrate market support and diversify its funding sources under challenging economic conditions reflects the work done in cementing relationships and building credibility in recent years.

Bridge-to-bond loans are short-term financing solutions that bridge the gap between a company’s immediate funding needs and its long-term financing plans, typically in the form of issuing bonds.

These loans offer interim financing for companies to meet urgent financial requirements while they prepare for long-term capital-raising activities, such as issuing bonds.

This development highlights the growing importance of collaboration among African financial institutions in supporting trade finance and corporate growth across the continent.

The successful conclusion of this deal is a testament to the strength of the financial sector in Africa and its ability to provide innovative solutions to meet the needs of businesses and economies across the region.