Ecobank Transnational Inc. said it issued a convertible debt facility of $400 million primarily aimed at refinancing maturing facilities.
Out of the total, $390 million have been structured into two tranches, with the first tranche being a convertible loan facility of $250 million signed with Deutsche Bank AG. Ecobank said the conversion right attached to the first tranche will be triggered at the issuance of the second tranche, a $140 million convertible bond that will be subscribed by Qatar National Bank (QPSC).
Meanwhile, the bank said a third tranche of $10 million for shareholders other than institutional shareholders is expected to close in October.
The convertible bond will have a maturity of five years and a coupon of 6.46% above the three-month London Interbank Offered Rate, with an option to convert at an exercise price of 6 cents during the conversion period, which will begin Sept. 5, 2019, and end Sept. 30, 2022. Ecobank said the debts will be redeemed at maturity if the conversion option is not exercised.