Ecobank Nigeria Clears $300m Eurobond, Shifts Focus to Local Debt Market
Ecobank Nigeria has fully repaid its $300 million Eurobond due on February 16, 2026, marking a major milestone in its balance sheet strengthening and liability management strategy.
The lender confirmed that both the outstanding principal and accrued interest have now been settled.
Here’s a detailed breakdown of what this means
Full Repayment of $300m Eurobond
Ecobank Nigeria completed the repayment of its $300 million 7.125% Senior Note due 2026.
This follows an earlier move in January 2026, when the bank prepaid approximately $245 million, representing over 80% of the total issuance.
With the final settlement now completed, the Eurobond obligation has been fully extinguished.
Strategic Liability Management Move
The repayment forms part of the bank’s broader strategy to:
• Strengthen its balance sheet
• Reduce external debt exposure
• Improve capital efficiency
• Reinforce investor confidence
The move underscores a proactive approach to liability management and prudent capital planning.
Shift Toward Domestic Capital Markets
Following the Eurobond repayment, Ecobank Nigeria announced a strategic pivot toward the domestic debt market.
According to the bank, future funding initiatives will focus primarily on:
• Domestic credit ratings
• Local debt issuance
• Participation in Nigeria’s capital market
The bank said this shift reflects growing confidence in Nigeria’s local debt market and aligns with its long-term goal of optimising funding costs.
Management Speaks
Financial Controller of Ecobank Nigeria, Ogorchukwu Okwechime, stated that the successful repayment reinforces the bank’s commitment to maintaining a resilient balance sheet.
He noted that prioritising domestic funding sources will help the bank achieve its funding objectives while sustaining investor confidence.
Details of the Original Eurobond Structure
The notes were originally issued by EBN Finance Company B.V., with limited recourse to the issuer.
The structure was created specifically to finance the purchase of the:
• $300 million 7.125% Senior Notes due 2026 issued by Ecobank Nigeria.
The recent repayment closes out that obligation entirely.
Key Advisers on the Transaction
The tender offer process involved:
• Renaissance Securities Nigeria Limited (Renaissance Capital Africa) acting as financial adviser and dealer manager
• Sodali & Co Limited serving as tender agent
Their roles facilitated the structured buyback and final repayment process.
Why This Matters
The full Eurobond repayment:
• Reduces foreign currency exposure
• Improves leverage metrics
• Enhances financial flexibility
• Positions the bank to tap domestic funding opportunities
At a time when funding costs and currency risks remain key concerns for financial institutions, this move strengthens Ecobank Nigeria’s operational stability.
Big Picture Takeaway
By clearing its $300 million Eurobond ahead of maturity and pivoting toward local capital markets, Ecobank Nigeria signals confidence in Nigeria’s domestic debt ecosystem.
The transaction not only reinforces its balance sheet but also positions the bank for more cost-efficient and sustainable funding in the years ahead.
Ecobank Nigeria has fully repaid its $300 million Eurobond due on February 16, 2026, marking a major milestone in its balance sheet strengthening and liability management strategy.
The lender confirmed that both the outstanding principal and accrued interest have now been settled.
Here’s a detailed breakdown of what this means
Full Repayment of $300m EurobondEcobank Nigeria completed the repayment of its $300 million 7.125% Senior Note due 2026.
This follows an earlier move in January 2026, when the bank prepaid approximately $245 million, representing over 80% of the total issuance.
With the final settlement now completed, the Eurobond obligation has been fully extinguished.
Strategic Liability Management MoveThe repayment forms part of the bank’s broader strategy to:
• Strengthen its balance sheet
• Reduce external debt exposure
• Improve capital efficiency
• Reinforce investor confidence
The move underscores a proactive approach to liability management and prudent capital planning.
Shift Toward Domestic Capital MarketsFollowing the Eurobond repayment, Ecobank Nigeria announced a strategic pivot toward the domestic debt market.
According to the bank, future funding initiatives will focus primarily on:
• Domestic credit ratings
• Local debt issuance
• Participation in Nigeria’s capital market
The bank said this shift reflects growing confidence in Nigeria’s local debt market and aligns with its long-term goal of optimising funding costs.
Management SpeaksFinancial Controller of Ecobank Nigeria, Ogorchukwu Okwechime, stated that the successful repayment reinforces the bank’s commitment to maintaining a resilient balance sheet.
He noted that prioritising domestic funding sources will help the bank achieve its funding objectives while sustaining investor confidence.
Details of the Original Eurobond StructureThe notes were originally issued by EBN Finance Company B.V., with limited recourse to the issuer.
The structure was created specifically to finance the purchase of the:
• $300 million 7.125% Senior Notes due 2026 issued by Ecobank Nigeria.
The recent repayment closes out that obligation entirely.
Key Advisers on the TransactionThe tender offer process involved:
• Renaissance Securities Nigeria Limited (Renaissance Capital Africa) acting as financial adviser and dealer manager
• Sodali & Co Limited serving as tender agent
Their roles facilitated the structured buyback and final repayment process.
Why This MattersThe full Eurobond repayment:
• Reduces foreign currency exposure
• Improves leverage metrics
• Enhances financial flexibility
• Positions the bank to tap domestic funding opportunities
At a time when funding costs and currency risks remain key concerns for financial institutions, this move strengthens Ecobank Nigeria’s operational stability.
Big Picture Takeaway
By clearing its $300 million Eurobond ahead of maturity and pivoting toward local capital markets, Ecobank Nigeria signals confidence in Nigeria’s domestic debt ecosystem.
The transaction not only reinforces its balance sheet but also positions the bank for more cost-efficient and sustainable funding in the years ahead.