Ecobank Transnational Incorporated (ETI) has launched a private placement offering to raise up to US$250m in Additional Tier 1 (AT1) capital through contingent convertible notes.
The transaction follows shareholder approval secured during an Extraordinary General Meeting (EGM) held on May 28, 2025, in Lomé, Togo. The offering window will remain open for ten days, beginning July 9. Renaissance Capital Africa has been appointed as transaction adviser for the capital raise.
According to the group, the move forms part of a broader strategic initiative to strengthen ETI’s capital adequacy ratio, enhance its financial resilience, and support long-term growth objectives across its diversified African banking network.
“The launch of this Additional Tier 1 capital raise signals our commitment to maintaining a strong capital base as we continue to expand our operations and invest in innovation across key markets,” the company said in a statement.
The capital instruments to be issued are contingent convertible notes — a common tool for banks to bolster their regulatory capital buffers under Basel III standards. These instruments qualify as Additional Tier 1 capital, designed to absorb losses in times of financial stress and support the institution’s overall capital structure.
Ecobank emphasized that the capital raise is being conducted through private placement, not a public offering, and as such, does not constitute an invitation to the general public to subscribe to or purchase the securities.
The initiative is seen as a proactive measure to position ETI more competitively in an evolving financial landscape, where macroeconomic volatility, regulatory shifts, and capital adequacy demands continue to shape banking strategies across Africa.
Ecobank Transnational Incorporated reported a profit after tax of N187.1bn for the first quarter of 2025, marking a 33 per cent increase compared to N140.9bn in the same period of 2024.
In the bank’s financial statement filed on the Nigerian Exchange Limited on Wednesday, the group’s gross earnings for the quarter rose by 17 per cent, reaching N1.054tn, up from N904.2bn in Q1 2024.
Ecobank’s revenue for the first quarter grew by 19 per cent to N788.7bn, compared to N665.4bn in the corresponding period of 2024. This growth was largely attributed to strong operating income, which increased by 24 per cent to N381.6bn, compared to N307.5bn in the first quarter of 2024. This operating income surge was driven by higher net interest income and a solid performance in non-interest income.
The bank’s profit before tax for Q1 2025 reached N267.3bn, reflecting a 33 per cent increase from N201.5bn recorded in the same period in 2024. This robust performance was propelled by the growth in both revenue and operating income, along with effective cost management.
Ecobank’s earnings per share for the first quarter rose by 39 per cent to 520.4 kobo, compared to 374.7 kobo for Q1 2024. The strong growth in EPS underscores the value delivered to shareholders, with the bank’s earnings significantly outpacing the previous year’s figures.
Total assets for Ecobank stood at N44.5tn, showing a 3 per cent increase from N43.3tn as of December 2024. This reflects the bank’s ability to expand its asset base despite external economic challenges. Loans and advances to customers were stable at N15.3tn, while customer deposits grew by 5 per cent to N33.2tn, further strengthening Ecobank’s balance sheet.
