Ecobank Nigeria has said that it plans to repay the $250 million outstanding Eurobond on August 14, 2019, two years ahead of its maturity date.
The bond was issued in August 2014 with 8.75 per cent rate to one of the bank’s largest subsidiaries; EBN Finance Company BV and is due by August 2021.
The Nigeria unit of the Pan-African banking group Ecobank Transnational Inc. (ETI) in a regulatory filing on The Nigerian Stock Exchange (NSE) on Friday said the note will be delisted from the regulated market of Euronext Dublin as of August 14.
“The early redemption of the Subordinated Note is a liquidity management and operational efficiency decision which highlight the strength of ENG balance sheet,” the commercial lender said in the filing to the NSE.
With the announcement, Ecobank has joined the league of banks repaying outstanding fund borrowed from the International Capital Market (ICM) ahead of maturity.
Access Bank, Zenith Bank, and First Bank had announced early in the year their plans to repay outstanding Eurobond ahead of maturity date in similar circumstances, described as part of their liquidity management strategies.
Analysts said many of the banks are taking advantage of the stability in the local foreign exchange market to liquidate their external borrowing to avoid currency crisis in the event of future devaluation of the naira.