Ecobank Transnational Incorporated liability is set to rise as the lender is looking to increase its capital flow through debt financing, which will have both negative and positive impact on its balance sheet.
The financial institution plans to raise funds from the international debt capital markets to finance its operation and other company activities, which includes acquisition of new assets
The parent company of Ecobank is eyeing $300 million, and will secure the capital by issuance of tier-2 qualifying sustainability notes, a statement from Ecobank disclosed.
While the notes exchange for capital is in line with United States Securities and Exchange Commission Rule 144A and Regulations, the $300 million will cause a hike in Ecobank’s financial burden, but boost availability of liquidity to keep the creditor running.
The notes will be listed on the London Stock Exchange, and expected to be traded on the bourse’s regulated market.
“An equivalent amount of the net proceeds of the notes will be used to finance or re-finance, in part or in full, new or existing eligible assets in accordance with ETI’s Sustainable Finance Framework.
It however warned that the market conditions and conclusion of necessary transaction documentation will determine the issuance of the notes.