S&P World Scores has mentioned it may revise the outlook to steady if Ecobank Nigeria efficiently implements its capital-boosting measures or achieves important recoveries on its FX-denominated loans throughout the subsequent six months.
“If the {bank} receives the capital injection from its mother or father throughout the subsequent couple of months, we anticipate that it’s going to now not be in breach of the minimal CAR. This may most likely take away the chance related to the bond acceleration. If it doesn’t obtain the promised assist, we expect default seems inevitable. Due to this fact, we revised Ecobank Nigeria’s stand-alone credit score profile (SACP) to ‘cc’ from ‘ccc’,” the report said.
Ecobank Nigeria has introduced a young supply to purchase again $150 million, or half of its excellent senior unsecured Eurobond at par, along with accrued curiosity. The supply contains an early tender premium of $12.5 per $1,000 of the principal quantity (1.25%) and the most probably settlement date shall be July 8, 2025.
The {bank} can be soliciting consent from its noteholders to take away the capital adequacy covenant on the remaining notes. The {bank} is providing an early consent price of $2.50 per $1,000 of the principal quantity. The covenant was beforehand waived till Sept. 30, 2025.
To strengthen its capital adequacy, we anticipate Ecobank Nigeria to pursue extra measures, akin to issuing an extra $150 million in AT1 devices. That mentioned, the unsure {economic} atmosphere may make it harder to spice up capital by such means. We consider {that a} default or a distressed change seems inevitable throughout the subsequent six months, until the {bank} can efficiently bolster its capital or get better important quantities from loans denominated in foreign currency (FX).
