Ecobank Nigeria Limited has announced a tender offer for the remaining US$150 million of its US$300 million 7.125 per cent Senior Note Participation Notes due February 16, 2026.
The offer opened on Friday, November 28, 2025, allowing eligible investors to tender their notes ahead of the bond’s scheduled maturity.
According to the bank, investors whose notes are accepted will receive US$1,000 for each US$1,000 principal, plus accrued and unpaid interest up to but excluding the settlement date. The transaction is expected to settle on or before December 31, 2025.
Ecobank described the move as part of its proactive liability management strategy, aimed at enhancing capital flexibility and maintaining a balanced debt profile amid evolving macroeconomic conditions. Participation in the offer is voluntary.
Background
The tender offer comes four months after the bank redeemed US$150 million, half of the Eurobond, in July 2025 through a similar tender offer and exit consent process. That strategic buyback was enabled by improved cash flows, strong loan recoveries, and early settlement of promissory notes from its parent company, Ecobank Transnational Incorporated (ETI).
At the time, the bond traded close to par, reflecting stable investor sentiment. Bondholders also consented to the removal of a capital adequacy ratio (CAR) covenant, which had been triggered earlier in 2024 after Ecobank’s CAR fell to 7.65 per cent, below the regulatory minimum of 10% for national banks, primarily due to naira depreciation.
Ecobank has been executing a recovery programme anchored on profitability, cost control and capital support from ETI. The bank had previously indicated plans to redeem the remaining US$150 million at maturity in February 2026, subject to market conditions.
The new tender offer accelerates that timeline, allowing the bank to achieve near-full redemption two months early.
Market Implications
Analysts say Ecobank Nigeria’s decision to retire its debt ahead of 2026 could help reduce refinancing risk and reinforce investor confidence.
With global borrowing costs still elevated and economic uncertainties persisting, early liability reduction signals strong liquidity and disciplined balance sheet management. The offer also provides an opportunity for investors to rebalance their portfolios before year-end.
The move aligns with broader Group trends. ETI reduced its borrowed funds by 15% to N2.83 trillion as of September 2025—representing 6% of total assets, down from 8% in December 2024.
Group Performance Context
Ecobank Nigeria’s performance is closely tied to the wider ETI Group, which delivered one of its strongest quarterly results in years.
- Q3 2025 pre-tax profit: N394.6 billion (up 47% YoY)
- Q3 2025 profit after tax: N268.5 billion (up 48% YoY)
- 9M 2025 pre-tax profit: N1.01 trillion (up 42% YoY)
- 9M 2025 profit after tax: N702.4 billion (up 43% YoY)
Despite inflation and currency pressures across several markets, operating expenses rose only 3 per cent to N446.2 billion. Meanwhile, the Group strengthened its risk posture, increasing impairment charges by 64 per cent to N129.7 billion.
ETI’s balance sheet remained resilient, with total assets rising 11 per cent to N47.97 trillion, driven by strong customer deposits, which grew to N35.68 trillion, accounting for 74.37 per cent of total assets.
