London welcomes first African convertible bond
- Ecobank Transnational Incorporated (ETI) issues $150 million convertible bond on London Stock Exchange’s new International Securities Market (ISM)
- Becomes first African issuer on ISM
- Brings total volume admitted to ISM to over $1.2bn since launch
- Reinforces London’s status as the most international financial centre
London Stock Exchange today celebrates the admission of Ecobank Transnational Incorporated’s (ETI) $150 million convertible bond on London’s International Securities Market (ISM). ETI is the first African convertible bond to list in London. The five-year dated bonds were launched with a coupon interest rate of 6.46 per cent per annum above three-month U.S. dollar LIBOR, reset semi-annually and payable semi-annual in arrears.
ETI, the parent company of the Ecobank Group, will use the net proceeds of the placement to primarily refinance ETI’s maturing debt facilities.
ETI is the first African issuer on London’s ISM, setting the standard for African issuers and bringing the total volume admitted on the platform to over $1.2 billion since its launch in May 2017. ISM has been designed to meet the demands of issuers and investors to improve the effectiveness and competitiveness of the UK primary debt markets. The market provides an additional choice of listing venue for a variety of fixed income issuers seeking access to London’s unique deep pool of international capital.
On the occasion of London Stock Exchange’s fourth Nigerian Capital Markets and Banking conference, Nikhil Rathi, CEO, London Stock Exchange plc, welcomed The Rt Hon Priti Patel MP, Secretary of State for International Development and Greg Davis, Group Chief Financial Officer, Ecobank, to open trading in London today.
The Rt Hon Priti Patel MP, Secretary of State for International Development:
“The City of London is the world’s financial services powerhouse, which is why I have committed to working closely with the City to develop links with developing countries.
“By issuing the first African convertible bond in London, Ecobank is paving the way for African companies to come to the London Stock Exchange. They will be able to draw on the UK’s world-class financial expertise and tap into new sources of investment, which are crucial to supporting businesses, job creation and economic growth in Africa.”
Greg Davis, Group Chief Financial Officer and Executive Director, Ecobank Transnational Incorporated:
"This is the first issuance of its kind for Ecobank outside of Africa. As such, it represents a milestone in terms of our connectivity with international investors, leveraging on the transactional bridge between the Nigerian and London Stock Exchange. Through London, we attract the world’s largest investors and international visibility, complementing the domestic market, which is something we will continue to do for Ecobank and our clients."
Nikhil Rathi, CEO, London Stock Exchange plc & Director of International Development, London Stock Exchange Group:
“Congratulations to Ecobank on their $150 million convertible bond, the first African debt transaction on London’s International Securities Market and a significant milestone for both Ecobank and London Stock Exchange.
“The successful admission is a reflection of international investors’ interest in the Africa growth story. It also highlights London Stock Exchange’s position as a strong partner to the African continent and the City as a leading global venue for raising equity and debt finance.”
London Stock Exchange Group has a long history of supporting the development of African capital markets and investment in African companies. To find out more about ISM, click here.
- There are 104 African companies listed or trading on London Stock Exchange – more than on any other international stock exchange
- These companies have a total market capitalization of over $165 billion, and in the last 15 years have raised more than $17 billion on London’s markets
- There are currently 13 African sovereign bonds listed in London, from Egypt, Gabon, Namibia, Nigeria and Zambia
- In June 2017, Nigeria raised $300 million through its first Diaspora Bond on London Stock Exchange. The retail bond was aimed at Nigeria’s global expatriate community seeking to invest in the country’s development. It was the first bond of its kind from sub-Saharan Africa.
- In March 2017, London Stock Exchange Group launched ‘Companies to Inspire Africa,’ a report identifying, for the first time, Africa’s fastest growing, private companies
- In March 2017, London Stock Exchange signed a Memorandum of Understanding with UK government backed GuarantCo to encourage the development of frontier and emerging debt capital markets and to facilitate the listing of bonds on London Stock Exchange’s markets
- Seplat was the first Nigerian company to simultaneously dual list equity shares in London and Nigeria in April 2014
- In March 2016, LSEG established an Africa Advisory Group, bringing together 12 distinguished business leaders, policymakers and investors from across Africa, to discuss the challenges and opportunities presented by the development of the continent’s capital markets
- In November 2014, London Stock Exchange Group and The Nigerian Stock Exchange signed a capital markets agreement to support African companies seeking dual listings in London and Lagos. The agreement followed the implementation earlier in 2014 of a unique new cross-border settlement process between the UK and Nigeria
- In June 2014, LSEG signed a strategic agreement with Casablanca Stock Exchange to share its expertise on the full exchange business chain, from listing to trading, and from clearing to settlement and custody with a commitment to position Casablanca’s capital markets and financial infrastructure as a regional hub
- LSEG market infrastructure technology is deployed in more 12 African markets, including Botswana Stock Exchange, Casablanca Stock Exchange and Johannesburg Stock Exchange
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For further information:
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Notes to editors:
About London Stock Exchange Group:
London Stock Exchange Group (LSE.L) is an international markets infrastructure business. Its diversified global business focuses on capital formation, intellectual property and risk and balance sheet management. LSEG operates an open access model, offering choice and partnership to customers across all of its businesses. The Group can trace its history back to 1698.
The Group operates a broad range of international equity, ETF, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS (Europe's leading fixed income market); and Turquoise (a pan-European equities MTF). Through its platforms, LSEG offers market participants, including retail investors, institutions and SMEs unrivalled access to Europe’s capital markets. The Group also plays a vital economic and social role, enabling companies to access funds for growth and development.
Through FTSE Russell, the Group is a global leader in financial indexing, benchmarking and analytic services with approximately $15 trillion benchmarked to its indexes. The Group also provides customers with an extensive range of data services, research and analytics through Mergent, SEDOL, UnaVista, XTF and RNS.
Post trade and risk management services are a significant part of the Group’s business operations. In addition to majority ownership of LCH, a multi-asset global CCP operator, LSEG owns CC&G, the Italian clearing house; Monte Titoli, a leading European custody and settlement business.
LSEG is a leading developer and operator of high performance technology solutions, including trading, market surveillance and post trade systems for over 40 organisations and exchanges, including the Group’s own markets. Additional services include network connectivity, hosting and quality assurance testing. MillenniumIT, GATElab and Exactpro are among the Group’s technology companies.
Headquartered in the United Kingdom, with significant operations in North America, Italy, France and Sri Lanka, the Group employs approximately 4,000 people.
Further information on London Stock Exchange Group can be found at www.lseg.com