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.