Ecobank to suspend its Eurobond, amid difficult conditions in emerging markets

Banking
Tuesday, 17 July 2018 15:53
Ecobank to suspend its Eurobond, amid difficult conditions in emerging markets

(Togo First) - Due to actual difficult market conditions, Ecobank announced it will suspend the roadshow it started for its Eurobond last month.

In an interview conducted last Thursday, Ade Ayeyemi, CEO of the Lomé-based pan-African group, said market conditions in emerging countries hardened over the past three months. “There was no trade war when we started… There were no issues in Turkey. Now, we wait. If things do not calm down, we will just postpone to next year, Ayeyemi said.  

He added that since the group recorded a 50% increase of its post-tax profit this year, it no more needs to seek external funding at the moment.

Ecobank also estimates it has improved its loan portfolio with the volume of its bad debts having slumped. It also plans to reduce its cost/revenue ratio from 60% to 50% in the mid-term.

“Once we have done that, we will be able to produce a return on equity of over 20%,” Adé Ayeyemi said.

Present in about 30 African countries, Ecobank recorded a post-tax profit of $228 million in 2017, and a 10% return on equity, according to Bloomberg. A performance that it owes to a growing number of its digital services users.

Fiacre E. Kakpo

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