Ecobank Signs $250m Loan Facility With Afreximbank, AFC

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A $250 million senior unsecured bridge-to-bond credit agreement was signed by Eco bank Transnational Incorporated (ETI) to support the group’s general corporate purposes and trade finance. 

By: Peace Adisa

The facility has a twelve-month term, with the potential for a six-month extension at the lenders’ choice.

Global coordinators and original mandated lead arrangers were Africa Finance Corporation (AFC) and African Export-Import Bank (Afrexim bank). Mashreqbank PSC became a required lead arranger in the deal.

Additionally, the accordion component of the bridge-to-bond loan allows for an increase in the total obligations made under this facility within a specified period of time.

“We are very excited about this new facility, which provides additional liquidity buffers for the bank,” said Ayo Adepoju, Group CFO of Eco bank. The degree of effort put forth in recent years to forge connections and establish trust is reflected in the company’s ongoing ability to show market support and, in particular, diversify its funding sources amid difficult economic times.

Bridge-to-bond loans are short-term financial products that act as a link between a business’s long-term financing goals—which usually involve the issuance of bonds—and its short-term funding need.

These loans give businesses the short-term funding they need to cover pressing expenses while they are ready to raise more money over the long run through bond issuance.