Ecobank Nigeria redeems $150m eurobond early amid capital rebuild drive
Ecobank Nigeria Limited has successfully completed the partial redemption of its $300 million 7.125 per cent Senior Notes due in February 2026, repaying 50 per cent of the Eurobond on July 8, 2025.
The early repayment — eight months ahead of maturity — reflects the bank’s strengthened liquidity position and commitment to proactive debt management.
The early redemption was made possible by robust cash flows driven by loan repayments and early redemptions of promissory notes from the bank’s parent company, Ecobank Transnational Incorporated (ETI). As of July 11, the bond traded close to par at $99.00, a testament to investor confidence in the bank’s credit profile and repayment capacity.
Ecobank Nigeria’s CAR had slipped to 7.65 per cent in 2024, falling below the Central Bank of Nigeria’s (CBN) 10 per cent threshold for national banks.
The drop was largely attributed to the devaluation of the naira, which increased the bank’s risk-weighted foreign currency loan exposures.
To restore capital compliance, Ecobank has launched a multi-pronged recovery plan, including additional capital injections, aggressive cost-cutting, and accelerated provisioning.
“This is a textbook case of proactive liquidity and liability management,” said Dr. Tope Fasua, economist and CEO of Global Analytics Consulting.
“By redeeming early and removing restrictive covenants, Ecobank is not just buying time — it’s reinforcing investor trust and laying the groundwork for sustainable performance.”
Revenue rose 30 per cent year-on-year to N113.7 billion from N87.6 billion in the first half of 2024. Profit before tax climbed 90 per cent to N13.5 billion, up from N7.1 billion, driven by a disciplined focus on balance sheet cleanup and cost optimisation.
Gross impairment charges spiked over 200 per cent to N32.8 billion, reflecting intensified provisioning under the bank’s “Asset Quality War Room” initiative.
This internal task force has led to aggressive loan recoveries, particularly in the oil and gas sector, where Ecobank holds significant exposures.
In 2025 alone, the bank recovered $6 million (N9 billion) from a long-standing obligor. Over N170 billion in Stage 2 loans were upgraded to Stage 1, reflecting improved borrower performance.
“Despite the CAR dip, the bank’s fundamentals are improving,” noted Bolanle Adewole, a Lagos-based banking analyst.
“It’s clear that Ecobank is executing a credible turnaround strategy, supported by a strong parent and prudent regulatory navigation.”
Ecobank Transnational, the holding company, injected over $10 million in 2024 to support recapitalisation efforts and help meet the CBN’s N200 billion minimum capital requirement for national banks.
“We are focused on building a resilient, well-capitalised institution that can deliver long-term value,” said Bolaji Lawal, Managing Director of Ecobank Nigeria.
“This early redemption sends a strong signal of financial discipline and intent.”
With liquidity bolstered, investor sentiment improving, and a credible path to capital restoration underway, Ecobank Nigeria appears to be on firm footing as it navigates a complex macro-financial landscape.
