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Ecobank Transnational Incorporated (ETI) yesterday announced that it was seeking noteholders’ approval to modify the terms and conditions of its outstanding notes totaling $875 million.
Specifically, the bank initiated consent solicitations for holders of its $525 million 10.125% Notes due October 2029 and $350 million Fixed Rate Reset Tier 2 Sustainability Notes due 2031, according to a statement.
The announcement, which was made on the London Stock Exchange, covered the bank’s $525 million 10.125 per cent notes due October 15, 2029, and its $350 million Fixed Rate Reset Tier 2 Sustainability Notes due 2031.
Under the plan, ETI is seeking the consent of noteholders through an Extraordinary Resolution to amend certain provisions of the notes. The bank wants to simplify its reporting obligations across its network of subsidiaries, ensuring that only those entities deemed material to its ability to service the notes are subject to strict compliance requirements.
Explaining the rationale for the proposed changes, ETI stated: “The amendments we are seeking will provide the group with greater flexibility in managing its obligations, while continuing to ensure that noteholders are protected by the financial information most relevant to the performance of the group.”
To secure investor support, Ecobank has introduced financial incentives for participation in the process. According to the disclosure, investors who deliver their consent early will receive a cash fee of $1.25 for every $1,000 of notes held, while those who submit instructions later but before the final deadline will be entitled to $0.25 per $1,000 of notes.
A virtual meeting of noteholders has been scheduled for September 30, 2025, where the proposed changes will be formally presented and put to a vote.
The bank stressed that the proposed amendments would not affect the core economic terms of the notes, such as interest payments or maturity dates. Instead, the focus is on reducing the administrative burden associated with reporting across its numerous subsidiaries, which span more than 30 countries in Africa.
In a statement accompanying the announcement, Ecobank added: “We believe these amendments will allow us to reduce unnecessary administrative complexity, enhance efficiency across our operations, and maintain a strong covenant framework for the benefit of all stakeholders.”
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