Ecobank Nigeria Limited has initiated a new tender offer for the remaining US$150 million of its US$300 million 7.125% Senior Note Participation Notes due in February 2026, marking another major step in the bank’s ongoing liability management programme. The offer—which opened on Friday, 28 November 2025—gives eligible noteholders the option to sell their securities ahead of the February 16, 2026 maturity date.
Under the terms announced, investors whose notes are accepted will receive US$1,000 for every US$1,000 principal amount tendered, in addition to accrued and unpaid interest up to but excluding the settlement date. Ecobank expects the transaction to be settled on or before 31 December 2025.
The bank described the tender as a continuation of its proactive effort to optimise its capital structure, improve financial flexibility, and maintain stability in the face of persistent macroeconomic challenges. Management emphasised that participation remains voluntary and at the sole discretion of noteholders, but the bank believes the offer provides an attractive opportunity for investors seeking liquidity before year-end.
This latest tender follows a similar move four months earlier, when Ecobank Nigeria successfully repurchased US$150 million—half of the Eurobond—through a tender offer and exit consent process executed in July 2025. That earlier buyback represented a milestone in the bank’s balance sheet clean-up, supported by stronger cash flows, improved loan recoveries, and early settlement of promissory notes from the parent company, Ecobank Transnational Incorporated (ETI).
Market indicators at the time suggested stable investor confidence, with the bond trading near par. Bondholders also approved the removal of a capital adequacy ratio (CAR) covenant that had previously been attached to the instrument. The covenant was triggered in 2024 after Ecobank’s CAR dipped to 7.65%, below the 10% regulatory requirement for national banks—a decline largely driven by a sharp depreciation of the naira. Since then, the bank has been implementing a recovery plan anchored on stronger profits, strict cost control, and capital support from ETI.
Originally, Ecobank had stated its intention to redeem the outstanding US$150 million at maturity in February 2026, subject to market conditions. However, the new tender offer accelerates that timeline, positioning the bank to retire nearly the entire Eurobond two months ahead of schedule.
Analysts say the early tender signals prudent liquidity management and reduces refinancing risk—an important consideration given rising global borrowing costs and ongoing macroeconomic volatility. For investors, the offer provides an opportunity to rebalance portfolios before year-end while still receiving full principal value and accrued interest.
The move also mirrors broader deleveraging across the ETI Group. As of September 2025, the Group reduced its borrowed funds by 15% to N2.83 trillion, representing 6% of total assets, down from 8% in December 2024. The Group’s financial health has also shown marked improvement. In Q3 2025, Ecobank reported one of its strongest quarterly results in years, with pre-tax profit up 47% year-on-year to N394.6 billion and profit after tax rising 48% to N268.5 billion. For the first nine months of 2025, Group pre-tax profit hit N1.01 trillion, up 42% year-on-year, while profit after tax climbed 43% to N702.4 billion.
The balance sheet remains resilient, with total assets rising 11% to N47.97 trillion. Customer deposits continue to power the Group’s funding strength, reaching N35.68 trillion—equivalent to 74% of total assets. While operating expenses increased modestly by 3% to N446.2 billion amid inflationary pressures, the bank also strengthened its risk buffers by increasing impairment charges by 64% to N129.7 billion.
Ecobank’s decision to launch the new tender offer reinforces its commitment to early risk reduction, disciplined capital planning, and long-term balance sheet stability as it enters the final stretch of the Eurobond’s lifecycle.
