Ecobank Nigeria Secures N50bn 10-Year Subordinated Loan

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Ecobank Transnational Incorporated (“ETI”), the parent of the Ecobank Group, announces that one of its significant subsidiaries, Ecobank Nigeria, secured N50 billion, 10-Year bilateral subordinated loan.

The bilateral funding provides stable medium-term liquidity to the balance sheet of Ecobank Nigeria and positively improved its balance sheet ratios, especially the capital adequacy ratio by circa 300 basis points.

The transaction proceeds would be deployed to support Micro, Small and Medium Scale Enterprises (“MSMEs”) and Small Corporates.

A subordinated loan is a debt which ranks after other debts if a company falls into liquidation or bankruptcy. Such debt is referred to as ‘subordinate’ because the debt providers have subordinate status in relation to the normal debt.

The facility according to the Group Head Corporate Communication, Adenike Laoye would be deployed to support Micro, Small and Medium Scale Enterprises (“MSMEs”) and Small Corporates.

“The bilateral funding provides stable medium-term liquidity to the balance sheet of Ecobank Nigeria and positively improved its balance sheet ratios, especially the capital adequacy ratio by circa 300 basis points. The transaction proceeds would be deployed to support Micro, Small and Medium Scale Enterprises (“MSMEs”) and Small Corporates.”

As its shareholders and investing public awaits its 2020 financial report, the bank which serves over 24 million customers recorded a N10.3bn PAT in its Q3, 2020 financial report

According to its Q3 2020 Audited results for the period ended September 30th, 2020, gross Earnings rose by 0.4 per cent to N613bn from N611bn in the previous quarter. While it’s Profit before tax declined by 68.5 per cent to N34bn and Profit after tax declined by 87 per cent to N10.3bn.

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.