Washington, D.C./Lome, Togo, July 1,
2010—IFC, a member of the World Bank Group, and IFC Asset Management
Company today announced a series of investments in Ecobank Transnational
Incorporated and its group subsidiaries that will help strengthen the financial
sector across several African countries and support the region’s recovery
from the impact of the recent turmoil in global financial markets.
Ecobank Transnational Incorporated is a leading Pan-African bank, with
subsidiaries in more countries in the region than any other bank. Its subsidiaries
are major contributors to economic activity in some of the world’s poorest
countries. By providing capital to a regionally systemic financial institution,
the investments will strengthen the banking sector and ease access to credit
for underserved segments of the market, such as small and medium enterprises.
The investments totaling $175 million consist of:
· A $131.4 million investment consisting of
a $56.4 million senior convertible loan and a $75 million senior non-convertible
loan from IFC Capitalization Fund, funded by IFC and the Japan Bank for
International Cooperation and managed by IFC Asset Management Company,
in ETI, the banking group’s Togo-based holding company.
· An $18.8 million senior convertible loan in
ETI by the IFC African, Latin American, and Caribbean Fund, managed by
IFC Asset Management Company.
· A subordinated loan of $12.5 million from
IFC to Ecobank Kenya
· A subordinated loan of $3 million from IFC
to Ecobank Liberia
· Local currency denominated loans to Ecobank
subsidiaries in Cameroon, Central African Republic, and Chad totalling
10 billion CFA ($9.4 million equivalent) using proceeds from the IFC CFA
Bond issue in Central Africa.
Arnold Ekpe, CEO of the Ecobank Group, said, “The investments from IFC,
IFC Capitalization Fund, and IFC ALAC Fund will strengthen Ecobank’s capital
base and enable us to continue to consolidate our expanded operations and
translate our new scale and footprint into value for our customers. Ecobank
will use the financing to maintain credit provision in Africa’s most challenging
Lars Thunell, IFC Executive Vice President and CEO, said, “Ecobank and
IFC share a strong commitment to supporting sustainable economic growth
in Africa by building inclusive financial markets. IFC looks forward to
strengthening our strategic partnership with Ecobank to bring financial
services to people and places that need them the most.”
Gavin Wilson, CEO of the IFC Asset Management Company, said: “Ecobank
is a champion of African growth. We are pleased to be investing in the
next phase of its success and to be supporting the positive impact it has
on the markets it serves."
IFC’s relationship with Ecobank started 17 years ago with an investment
in Ecobank Ghana. Since then, IFC has invested in a number of the group’s
subsidiaries, as well as in the group’s holding company in 1999 and 2008.
IFC has also supported improvements in the group’s governance structure
and social and environmental standards. The banking group is one of IFC’s
most important clients in Sub-Saharan Africa.
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing capital for private enterprise, and providing advisory and risk
mitigation services to businesses and governments. Our new investments
totaled $14.5 billion in fiscal 2009, helping channel capital into developing
countries during the financial crisis. For more information, visit www.ifc.org.
About IFC Asset Management Company
IFC Asset Management Company LLC, a wholly-owned subsidiary of IFC, invests
third-party capital, enabling outside investors to benefit from IFC’s
expertise in achieving strong equity returns as well as positive development
impact in the countries in which it invests. It manages the $3 billion
IFC Capitalization Fund as well as the ALAC Fund.
About the IFC Capitalization Fund
The $3 billion IFC Capitalization Fund is a global equity and subordinated
debt fund that aims to support banks considered vital to the financial
system of an emerging market country. By supporting systemic institutions,
the fund aims to speed up economic recovery and boost job creation while
reducing the impact of the financial crisis.
About Japan Bank for International Cooperation
The Japan Bank for International Cooperation (JBIC) is the international
wing of the Japan Finance Corporation, Japan’s policy-based financing
institution established on October 1, 2008. It succeeded International
Financial Operations of the former JBIC and will continue to use the name
JBIC to maintain international trust and confidence it has gained. JBIC
provides policy-based finance with a mission to contribute to the sound
development of the Japanese and international economy, including finance
responding to disruptions in financial order in the international economy.
For more information, visit www.jbic.go.jp.
About the IFC African, Latin American, and Caribbean Fund
The IFC ALAC Fund is a co-investment fund that invests alongside IFC in
equity investments in Sub-Saharan Africa and Latin American and the Caribbean.
It helps mobilize long-term capital for growth in the poorest regions of
Incorporated in Lome, Togo, Ecobank Transnational Incorporated (ETI) is
the parent company of the leading independent regional banking group in
Africa. It currently has a presence in 30 African countries. ETI is listed
the stock exchanges in Lagos, Accra and the West African Economic and Monetary
Union (UEMOA) – the BRVM. Ecobank is a full-service bank providing wholesale,
retail, investment and transaction banking services and products to governments,
financial institutions, multinationals, international organizations, medium,
small and micro businesses and individuals. For more information, visit