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Ecobank To Sell Shares, Bonds To Meet Capital Requirements

By on January 10, 2013

Ecobank Transnational Incorporated has disclosed that it will sell shares, and bonds in order to meet rising capital requirements in the African countries where it operates.

Ecobank has operations in 33 African countries, and many of these countries are asking their financial institutions to recapitalize in order to deepen their capacity.

Ecobank, CEO Thierry Tanoh, 49, said, “We’re starting to see in a lot of countries requirements by central banks to raise minimum capital requirements. If this continues quite aggressively we might have to look at raising additional resources.”

The CEO who took over from Arnold Ekpe last year also said that the bank may consider listing its shares on an Exchange outside Africa.

Ecobank may sell shares through a private placement and sell bonds if it decides it needs additional funds, said Tanoh.

“It could be a combination of both equity and tier-two capital,” he said.