Ecobank Secures Shareholders’ Nod to Raise $250 Million in Tier 1 Capital to Power Pan-African Growth

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Olori Uwem

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Mar 18, 2024
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Ecobank Secures Shareholders’ Nod to Raise $250 Million in Tier 1 Capital to Power Pan-African Growth

Move Aims to Strengthen Capital Base, Boost Digital Innovation, and Capture $20bn Diaspora Remittances

In a bold step to deepen its financial resilience and sustain leadership across African markets, Ecobank Transnational Incorporated (ETI) has received shareholders’ approval to raise $250 million through an Additional Tier 1 (AT1) capital instrument.

This announcement was made during the bank’s 37th Annual General Meeting and Extraordinary Meeting held in Lomé, Togo on May 28, 2025.

Strengthening Capital to Support Growth

The capital raise forms part of Ecobank’s broader strategy to fortify its Tier 1 capital, enhance regulatory compliance, and diversify funding sources.

The instrument will be convertible, with the conversion price determined by:
• The higher of the five-day volume-weighted average share price on the Nigerian Exchange (converted into USD), or
• A floor price of $0.01 per share on the conversion date.

The initiative follows Ecobank’s successful $75 million AT1 issuance in 2021, marking its continued innovation in Sub-Saharan Africa’s financial space.

Financial Performance – 2024 Highlights

At the AGM, Group Chairman Papa Madiaw Ndiaye reported strong results:
• Revenue surpassed $2 billion for the second consecutive year
• Profit hit $333 million
• Earnings per share (EPS) rose by 16% to $0.014
• Total assets climbed 3% to $28 billion

“These results reflect our resilient business model and pan-African strength,” Ndiaye stated.

Eye on the Future – Digital, Cross-Border Innovation

Ecobank is doubling down on its transformation agenda, particularly around:
• Digital banking solutions
• Data-driven cross-border connectivity
• Faster, cost-effective remittances

Group CEO Jeremy Awori highlighted a strategic focus on tapping into Nigeria’s $20 billion annual remittance market, leveraging the bank’s digital infrastructure and extensive African footprint.

What This Means for Stakeholders
• Investors: This capital raise boosts investor confidence and ensures compliance with international capital adequacy norms.
• Regulators: Signals proactive capital management and systemic risk mitigation.
• Customers: More innovation, better cross-border services, and robust digital experiences are on the horizon.
• African markets: Reinforces Ecobank’s pan-African leadership and capacity to drive intra-African trade and financial inclusion.

Conclusion

This move not only strengthens Ecobank’s balance sheet but also positions it to better serve Africa’s evolving financial landscape — from digital transformation to capturing remittance flows. With this bold capital boost, Ecobank is set to scale its impact and continue delivering value across 33 African countries.