Ecobank Nigeria Rolls Out Early Tender Offer on 2026 Eurobond to Cut Debt Burden
Ecobank Nigeria has opened a tender offer for holders of its US$300 million 7.125 % Senior Notes due February 2026 — giving investors the option to cash out early
As of the announcement, the bank said approximately US$150 million of the bond remains outstanding.
Under the terms, note holders who choose to tender will receive US$1,000 per US$1,000 in principal, plus any accrued interest up to the settlement date.
The settlement is expected on or before December 31, 2025, well ahead of the original February 2026 maturity.
This move represents a strategic effort by Ecobank Nigeria to manage liabilities more proactively and reduce refinancing risk at a time when macroeconomic headwinds and foreign‑exchange pressures remain significant for Nigerian banks.
The tender offer follows an earlier July 2025 buyback in which the bank repurchased half of the Eurobond — a sign of improving liquidity.
Notably, as part of the previous exercise, bondholders consented to remove the capital‑adequacy covenant attached to the notes — a move that gave the issuer more flexibility in managing its capital base.
However, the bank must balance early redemptions with maintaining sufficient liquidity for lending operations and strategic investments. Over-aggressive buybacks could strain cash flow or limit flexibility if unexpected market shocks occur.
Overall, the 2026 Eurobond tender offer positions Ecobank Nigeria as a more resilient and disciplined issuer, potentially supporting its creditworthiness, reducing debt burden, and fostering stronger investor trust in the long term.
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