By JEROME USHAKANG
Ecobank Transnational Incorporated (ETI) has revealed plans to sell $500million Eurobonds at yields that may rank among the highest from emerging markets this year.
The notes were priced as high as nine per cent as the bank said it planned to sell $500million of its five-year debt. It said the information of the bank offering five-year senior unsecured notes that might be priced in the high nine per cent area was obtained from a person familiar with the matter, who asked not to be identified because they were not authorised to speak publicly about it.
According to a report by Bloomberg recently, deliberations in the market hinted that the funding would enable ETI, to meet its general corporate obligations, including the refinancing of a portion of debt it owed banks. According to data compiled by Bloomberg, the yields will be about the juiciest since Ecuador sold $1billion of 10-year sovereign debt at 10.75 per cent in January.
It said the yields on the securities had dropped to nine per cent as sentiment towards emerging markets improved and the government secured a $4.2billion loan package from the International Monetary Fund(IMF). Ecobank, which reported a 44 per cent increase in net income to $328million in 2018 and a $1.8billion operating income, raised $200million in loans last year, which are due for repayment in November.