Ecobank Repays 50% of Eurobond Ahead of 2026 Maturity

Ecobank Nigeria Limited has repaid half of its $300 million Eurobond ahead of the scheduled February 2026 maturity date. The bank confirmed this in a statement, citing strong liquidity and financial resilience as key drivers behind the early repayment.

The lender also reported successful results from its ongoing tender and exit consent solicitation regarding the 7.125% Senior Notes due 2026. As of July 11, 2025, the bond traded near par at $99.00, signaling high investor confidence in the bank’s ability to meet its obligations.

According to the bank, the early repayment was supported by increased liquidity from loan collections and the early redemption of promissory notes by its parent company.

Read Also:

• Ecobank Opens 10-Day Window for $250M Capital Raise
• Investor Confidence Soars as Ecobank Secures $125M in Eurobond Deal

It also revealed that bondholders’ consent was sought to remove the capital adequacy ratio (CAR) covenant from the bond documentation.

In 2024, the bank’s CAR had dropped to 7.65%, falling below the 10% regulatory requirement for national banks, largely due to naira depreciation and its impact on foreign currency-exposed loan assets. However, the bank has implemented strategies to restore compliance, including enhanced revenue generation, accelerated provisioning, improved asset quality, and cost-cutting efforts.

Preliminary results for the first half of 2025 showed a 30% revenue increase to ₦113.7 billion, up from ₦87.6 billion in the same period in 2024. Gross impairment charges surged to ₦32.8 billion from ₦10.7 billion, while unaudited profit before tax jumped 90% to ₦13.5 billion. The liquidity ratio remains above the 30% regulatory minimum.

The Central Bank of Nigeria recently mandated banks to submit Capital Restoration Plans, which Ecobank is addressing through aggressive loan recoveries, strategic portfolio adjustments, and capital injections from its parent company, Ecobank Transnational Incorporated.

In 2025, the bank recovered over ₦9 billion from a long-standing delinquent obligor and successfully reclassified over ₦170 billion in loans from Stage 2 to Stage 1. The parent company also injected more than $10 million in 2024 to help the bank meet regulatory capital requirements.

Ecobank affirmed it will comply with the CBN’s directive by refraining from issuing dividends or bonuses, ensuring retained earnings are reinvested to fortify its capital base.