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Ecobank Transnational Inc. is seeking to raise $250 million in fresh capital through a targeted issuance to a limited pool of investors, the pan-African banking group said Thursday, as it moves to strengthen its balance sheet ahead of a regulatory deadline in Nigeria.
The offer, approved at an emergency general meeting, will prioritise a maximum of 100 shareholders on a first-come, first-served basis, according to a regulatory filing on the Nigerian Exchange. Additional investors may be considered under a secondary tier if space permits.
“The Extraordinary General Meeting hereby authorises the directors to raise to US$250,000,000 (Two Hundred and Fifty Million United States Dollars) in additional Tier 1 (AT1) capital qualifying instruments,” the statement reads.
“The AT1 shall be available for subscription, (i) with first-order priority to a maximum of one hundred (100) shareholders on a first-come, first-served basis, and (ii) with second-order priority to any other interested investors.”
The capital raise comes as Nigeria’s central bank imposes significantly higher capital requirements on lenders operating in the country. Banks with international licenses, such as Ecobank, must raise their minimum capital to N500 billion ($338 million) by March 2026—up tenfold from the previous N50 billion threshold. Institutions with national and regional licenses must increase theirs to N200 billion and N50 billion, respectively.
The recapitalization push follows two sharp devaluations of the naira in the past year, which have eroded banks’ capital buffers in dollar terms. The Central Bank of Nigeria says stronger balance sheets are essential to support credit growth and position the country to become a $1 trillion economy by 2030.
Read also: We could revise Ecobank Nigeria’s outlook to stable – S & P Global
To meet the new requirement, Ecobank will issue a capital-qualifying instrument with a conversion price set above the five-day volume-weighted average share price on the Nigerian Exchange, translated into U.S. dollars at the prevailing exchange rate. The floor price is pegged at $0.01 per ordinary share.
The bank, which operates in 35 African markets, also last month tapped investors for an additional $125 million as part of a $400 million Eurobond due in 2029, carrying a coupon of 10.1%.
The offering, aimed at refinancing existing obligations and meeting general funding needs, was more than twice oversubscribed, drawing interest from asset managers, development finance institutions, and commercial lenders across Africa, the U.S., U.K., Asia, Europe, and the Middle East.
Ecobank said the ongoing capital raise is part of a broader strategy to enhance its capital adequacy and support future growth across its pan-African footprint.
BusinessDay reported that Ecobank Nigeria’s long-term issuer credit rating was downgraded to ‘CCC-’ from CCC, with the outlook placed at negative by S&P Global Ratings. This is a resultant effect of the $150 million bond buyback offer on the bank’s $300 million Senior Unsecured Eurobond.
But the rating agency in another statement said the negative outlook could be upgraded to stable if the bank successfully implements emergency capital measures or recovers substantial FX‑denominated loans within the next six months.
