Ecobank Nigeria Limited has demonstrated strong financial management by fully repaying a significant portion of its international debt obligations ahead of schedule. The bank has successfully settled with bondholders who chose to tender their notes early, effectively prepaying a major chunk of a $300 million Eurobond issue.
Successful Completion of Tender Offer
The financial institution announced the completion of its tender offer, a process that allowed it to prepay approximately $245 million of the total $300 million Eurobond. This substantial prepayment represents more than 80 per cent of the entire bond issuance. The transaction specifically involved the bank's 7.125 per cent Senior Note Participation Notes, which were originally due for maturity in February 2026.
Ecobank Nigeria initiated this tender offer to eligible noteholders on 27 November 2025, focusing on the outstanding $150 million principal amount at that time. The offer provided investors with a valuable opportunity to redeem their investments before the original maturity date of 16 February 2026. The bank set two key deadlines for participation: an early tender deadline on 11 December 2025 and a late tender deadline on 29 December 2025.
Terms of the Early Settlement
Noteholders who validly tendered and had their offers accepted received favourable terms for the early redemption. They were paid a cash consideration of $1,000 for every $1,000 in principal amount. In addition to this full principal repayment, investors also received all accrued interest calculated from the last interest payment date up to, but not including, the final settlement date of 31 December 2025.
Following the successful closure of this offer, the bank's outstanding debt obligation on this specific note has been drastically reduced. The remaining principal amount now stands at approximately $55.092 million. This successful debt management exercise underscores the bank's proactive financial strategy.
Strategic Financial Management and Advisers
In an official statement, Ecobank Nigeria clarified that this initiative is a clear reflection of its proactive approach to liability management and its commitment to prudent balance sheet optimisation. By reducing its debt burden ahead of schedule, the bank strengthens its financial position and demonstrates credibility to the international investment community.
The complex tender offer was executed with the guidance of leading financial experts. Renaissance Capital Africa (Renaissance Securities Nigeria Limited) acted as the exclusive financial adviser and dealer manager for the transaction. Meanwhile, Sodali & Co Limited served as the independent tender agent, facilitating the process between the bank and the noteholders.
It is important to note the structure of the original issuance. The notes were originally issued by EBN Finance Company B.V., a special purpose vehicle. This issuance was done with limited recourse to the issuer and for the sole purpose of financing the purchase of the $300 million 7.125 per cent Senior Notes issued directly by Ecobank Nigeria Limited.
