Ecobank Transnational Incorporated has announced the receipt of a $75m perpetual non-cumulative additional tier-1 capital investment from Arise B.V
ETI announced this on Monday in a statement released to the Nigerian Exchange Limited and the investing public.
It said the investment from the private equity firm would be used for its general corporate purposes including loan growth and strengthening the capital buffers of profitable subsidiaries in two of the group’s cornerstone regions, namely Francophone West Africa and Anglophone West Africa.
Arise is a fund based in sub-Saharan Africa with operations in over 10 African countries and assets under management in excess of $960m, according to the statement. It is an institutional investor in ETI.
The Group Chief Executive Officer of ETI, Ade Ayeyemi, said, “This investment by Arise is a testament to continued support and confidence from our shareholders; their commitment to, and belief in our strategy which we remain focused on executing to deliver value to our shareholders and excellence to our customers.
“Indeed, in addition to improving our double leverage ratio, it is also a good boost for the firm and its staff.”
The Chief Executive Officer of Arise, Deepak Malik, was quoted as saying, “ETI is our primary banking investment in Francophone West Africa and Anglophone West Africa.
We are very supportive of ETI’s growth ambitions and its ability to increase financial services to Agri, SMEs and retail customers. Our investment will also strengthen the balance sheet of ETI and provide additional risk capital.”
– Punch