ECOBANK Group yesterday received shareholders’ approval to raise up to $250 million through an Additional Tier 1 (AT1) capital qualifying instrument to further boost the bank’s capital position.
At the company’s 37th yearly general meeting and extraordinary meeting held in Lome, Togo, yesterday, shareholders of Ecobank Transnational Incorporated (‘ETI’), the parent company of the Ecobank Group authorised the directors to raise up to $250 million in ATI capital instrument.
According to the bank, the conversion price of this additional Tier 1 capital will be the higher of the five-day volume-weighted average price on the Nigerian Exchange at the time of conversion, converted into U.S. dollars at the prevailing exchange rate, and a floor price of $0.01 per ordinary share on the conversion date.
This planned capital raise is part of the bank’s broader strategy to strengthen its Tier 1 capital base, enhance financial resilience, and support growth across its pan-African operations.
The initiative follows ETI’s successful $75 million AT1 issuance in 2021, which marked a pioneering effort in Sub-Saharan Africa.
By expanding its capital base, the bank aimed to maintain strong capital adequacy ratios, diversify its funding sources, and ensure continued compliance with regulatory requirements.
The move signalled ETI’s commitment to reinforcing its financial position and sustaining investor confidence as it continues to build on its leadership across African markets.
Reviewing its 2024 performance at the meeting, the Group Chairman, Papa Madiaw Ndiaye, said the bank achieved over $2 billion in revenue for the second consecutive year and generated $333 million in profit within the period.
He pointed out that the improved performance reflects the resilience of the bank’s diversified business model and dedication across Africa.
Ndiaye also disclosed that the bank’s earnings per share increased by 16 per cent to $0.014 while total assets on the balance sheet grew by three per cent to $28.0 billion.
To consolidate on the performance, he said the bank is working assiduously to strengthen its digital and data driven solutions that connects customers, markets and capital across borders with greater speed and ease.
He said: “As we cast our eye into the future and re-imagine all possibilities: rising competition from banks, fintechs and non-bank financial institutions, as well as factors such as geopolitics, regulations, capital markets, we can afford complacency. This means it is imperative that we embrace our ongoing Transformation agenda with renewed urgency to achieve sustainable growth.
Group Chief Executive Office, Jeremy Awori said the bank is intensifying efforts to capture a greater portion of the approximately $20 billion in annual remittances sent to Nigeria.
According to him, the bank is leveraging its extensive pan-African presence and advanced digital infrastructure to streamline the remittance process for Nigerians abroad, making cross-border money transfers faster, more accessible, and cost-effective.
He said the focus aligns with broader national objectives aimed at unlocking the full potential of diaspora remittances
