– Ecobank Transnational Incorporated, the Togo-based holding company of the pan-African Ecobank Group, today announced the closing of a USD 200 million 5-7 year syndicated debt facility with FMO, the Dutch development bank.
It is the second syndicated loan facility for the Ecobank Group arranged by FMO in recent years. ETI will use the facility to provide funding to a number of subsidiaries across its network of 36 African countries. In line with the Ecobank Group's strategic development objectives, at least 75 per cent of the loan facility will be directed to SME's across various sectors of the economy.
FMO arranged the syndication and kept a stake of USD 58.5 million for its own account with other DFIs and impact investors providing contributions as follows: DEG – Deutsche Investitionsund Entwicklungsgesellschaft mbH (EUR 21 mln), Proparco (EUR 21 mln), Belgian Investment Company for Developing Countries - BIO (USD 15 mln), Development Bank of Austria - OeEB (USD 15 mln), Blue Orchard (USD 30 mln), Symbiotics (USD 21.5 mln) and Oikocredit (USD 10 mln).
Commenting on the loan facility, Ade Ayeyemi, Ecobank Group CEO, said: " "ETI is pleased to conclude this financing arrangement with FMO, who have been able to bring a significant number of players to the financing table. The transaction will greatly enhance our capacity to serve our SME clients, who continue to be a very important market segment for us." Jürgen Rigterink, Chief Executive Officer at FMO, added: "FMO is proud to have arranged this successful syndicated loan agreement for our long-standing partner Ecobank Group. Through this investment we support small and medium-sized enterprises in some of the most underbanked countries in Africa. Although SMEs in these countries provide the majority of jobs, their access to
finance remains limited. We are really happy to bring new investors to these markets and help tospur economic growth where it is needed most."