Ecobank Transnational Incorporated (ETI) Plc has announced plans to raise fresh funds from international investors through the sale of special debt instruments known as Tier 2 Nature Notes.
The pan-African banking group said the fundraising exercise will be carried out under the United States Securities and Exchange Commission’s Rule 144A and Regulation S, which allow companies to offer securities to qualified international investors.
According to a notice released by the bank and signed by its Group Executive Director and Chief Financial Officer, Ayo Adepoju, the proceeds from the new debt issuance will serve two major purposes. First, part of the money will be used to refinance ETI’s existing $350 million Tier 2 notes carrying an interest rate of 8.750 percent and scheduled to mature in 2031.
The refinancing process will happen through a tender offer, where the bank intends to buy back some or all of the existing notes from investors before their maturity date.
Secondly, Ecobank stated that the remaining proceeds will support environmentally friendly projects under its Green Bond Framework. The bank explained that the funds will be invested in eligible green assets and sustainability-focused initiatives across its operations.
The financial institution noted that the green financing plan aligns with its broader sustainability goals and commitment to supporting environmentally responsible investments in Africa.
In the statement, ETI said it would allocate an amount equal to the total net proceeds from the Nature Notes to either finance or refinance new and existing green projects listed under its sustainability programme.
The lender also disclosed plans to list the new Notes on the London Stock Exchange. Once approved, the securities are expected to trade on the exchange’s regulated market, giving international investors access to the offering.
However, Ecobank pointed out that the success of the transaction will depend on market conditions and the completion of all required legal and financial documentation.
The planned fundraising highlights the increasing interest among African financial institutions in sustainable finance and green investment opportunities. In recent years, banks across the continent have shown stronger commitment to funding climate-friendly projects while also strengthening their capital base.
Tier 2 Notes are a form of subordinated debt often used by banks to improve their capital position and meet regulatory requirements. They are considered less risky for banks because they provide long-term funding while supporting balance sheet stability.
Ecobank’s latest move is expected to attract attention from global investors interested in African financial markets and sustainability-linked investments.
Industry analysts believe the offering could further strengthen Ecobank’s financial position while also boosting investor confidence in the bank’s long-term growth strategy and environmental commitments.
The development comes as financial institutions globally continue to balance profitability with sustainable financing initiatives aimed at supporting cleaner and greener economic growth.
