Ecobank Transnational Incorporated (ETI) is the Lomé based parent company of the Ecobank Group, overseeing 33 subsidiaries across the African continent. It has grown to become a key actor in Africa’s banking sector, in particular in fragile countries and for the SME sector.
Over the years, Proparco and the pan-African banking Group have continuously reinforced their partnership through numerous loans, bond subscriptions and trade finance guarantees to ETI and its subsidiaries.
As part of its COVID-19 crisis response, Proparco has granted a new $35 million loan to ETI. Proparco also syndicated contributions from Norway’s Norfund ($15 million) and Germany’s DEG ($10 million), amounting to a total envelope of $60 million.
This loan will strengthen ETI’s liquidity program designed to support its foreign currency liquidity needs of its subsidiaries. It will thus allow the Ecobank subsidiaries to enhance their essential financing activity to the private sector amid the current COVID-19 economic impact.
Proparco’s loan is part of the French Choose Africa Resilience program, a €1Bn envelope to support SMEs affected by the COVID-19 crisis. More than €600 million has been already been committed since the program was launched in November 2020.
Ade Ayeyemi, the Chief Executive Officer of the Ecobank Group commented: “Proparco has been a close and sustained partner of Ecobank together with Norfund and DEG. They have continued to support the Ecobank Group’s strategic objectives across our unparalleled Africa footprint. This $60 million loan will help in our commitment to the economic development of the continent, particularly in growing the SME segment in their recovery from the impact of the COVID19 pandemic. We applaud the syndicate of lenders’ support for the continent and the Choose Africa Resilience Program of the French Government.”
“Proparco is delighted to further reinforce its relationship with Ecobank and to have mobilized its Norwegian and German counterparts, Norfund and DEG, in this operation. Ecobank plays a critical role in supporting growth of the private sector in multiple African countries where it operates. With this new facility of 60MUSD, we are very happy to accompany Ecobank group which provides innovative and customised financial services to SMEs affected by the consequences of the COVID-19 crisis. This is fully in line with the objectives of the Choose Africa Initiative launched by the French Government and deployed by the AFD Group” said Djalal Khimdjee, Deputy CEO of Proparco.
“Norfund is both excited and proud to be part of the USD 60 million syndicated senior loan to Ecobank and thus being able to support the Group’s important role of providing much needed USD funding to its SME-clients across sub-Saharan Africa, that contribute to create much needed jobs. It is indeed our hope and ambition that we will get the opportunity to further develop the relationship with Ecobank going forward and thus further support the Group’s role as a leading pan-African provider of financial services” said Erik Sandersen, EVP and Head of Norfund’s Financial Institutions Department.
“On behalf of DEG, congratulations on this well-structured and efficiently executed syndication under the Choose Africa Resilience initiative. DEG is very proud to be part of this milestone transaction and we look forward to deepen our partnership with all institutions involved.” said Petra Kotte, Senior Director Financial Institutions and Germany Business.
This transaction will contribute to Sustainable Development Goal #8 (Decent Work and Economic Growth).