Ecobank Nigeria Limited has launched a tender offer for the remaining US$150 million of its US$300 million 7.125% Senior Note Participation Notes due 2026, marking the second phase of an ongoing effort to tidy up its external obligations ahead of schedule and settle legacy issues on its balance sheet.
The offer opened on Friday, 28 November 2025, giving eligible noteholders the option to sell their securities ahead of the original maturity date of 16 February 2026. According to the lender, investors whose notes are accepted will receive US$1,000 per US$1,000 principal, together with accrued and unpaid interest up to but excluding the settlement date. The settlement is expected on or before 31 December 2025.
Ecobank framed the transaction as part of a long-running “proactive approach to liability management”, aimed at strengthening capital planning flexibility and maintaining a more orderly debt composition in a period marked by uncertain macroeconomic conditions. Participation remains voluntary for noteholders.
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The move builds on the bank’s early repayment four months ago, when it redeemed US$150 million, half of the same Eurobond, through a tender offer and exit consent process in July 2025. That intervention was one of the most significant steps in the bank’s liquidity reset. It was enabled by healthier cash flows, stronger loan recoveries, and the early repayment of promissory notes from its parent company, Ecobank Transnational Incorporated (ETI).
At the time of the July buyback, the bond traded near par, signaling firm investor confidence in Nigeria’s subsidiary of the pan-African banking group. Bondholders also supported the removal of a capital adequacy ratio covenant that had constrained the bank after its CAR slid to 7.65% earlier in 2024, below the 10% minimum for national banks. The drop was driven largely by heavy exchange rate depreciation in Nigeria.
Since then, Ecobank Nigeria has pushed an internal recovery programme that centers on stronger profit performance, strict operating discipline, and support from ETI. The bank had previously said it intended to redeem the remaining US$150 million at maturity in February 2026, subject to market conditions. This fresh tender offer now accelerates that plan by roughly two months.
Why This Matters
The tender offer arrives at a moment when Nigerian banks are aggressively rethinking portfolio risk after a turbulent two years of currency volatility, inflation pressure, and persistent monetary tightening. For Ecobank, retiring foreign debt early reduces rollover risk, limits future interest expense, and puts it in a position to enter 2026 with a leaner external funding book.
Financial analysts say this decision will likely help preserve investor confidence in the lender and in Nigeria’s banking sector more broadly. Global borrowing costs remain elevated, and refinancing any foreign currency debt has become more expensive. By settling the bond ahead of time, the bank sidesteps the uncertainty of raising fresh dollar funding in a volatile environment.
The early liability reduction also gives investors room to tidy up their portfolios before the year closes, particularly those seeking to rebalance exposures ahead of anticipated rate decisions in early 2026.
The strategy aligns with broader moves at the Group level. Ecobank Transnational Incorporated reduced its total borrowed funds by 15% to N2.83 trillion as of September 2025, now representing 6% of total assets, down from 8% in December 2024. Group executives have repeatedly signaled that lowering leverage is a central priority.
Building on Group Momentum
Ecobank Nigeria’s actions cannot be separated from the wider momentum of the ETI Group, which enters 2026 in a stronger financial shape. The bank delivered one of its most impressive quarterly earnings performances in years during Q3 2025. Pre-tax profit rose 47% year-on-year to N394.6 billion, while post-tax profit climbed 48% to N268.5 billion. The momentum extended through the nine-month period, with pre-tax profit hitting N1.01 trillion, up 42% year-on-year, and profit after tax rising 43% to N702.4 billion.
The earnings expansion came even as the Group absorbed higher impairment charges and recorded a one-off loss from discontinued operations. Cost management played a major role. Operating expenses increased only 3% to N446.2 billion in Q3, an outcome the Group views as a win given steep inflation and currency swings across its markets.
The balance sheet remained sturdy. Total assets rose 11% to N47.97 trillion, largely lifted by customer deposits, which reached N35.68 trillion and accounted for nearly three-quarters of the entire asset base. Higher impairment charges — up 64% to N129.7 billion — signaled a more cautious posture, but analysts say the Group’s profitability gave it room to absorb the impact.
The Bigger Picture
Ecobank’s accelerated debt retirement underscores a trend that has grown more visible across African banking in the past two years: the shift toward tighter balance sheets, trimmed foreign currency exposure, and a broader push to insulate operations from global financial swings.
For Nigeria in particular, where the banking sector has been navigating the sharpest currency reset in decades, steps like this offer reassurance that systemically important lenders are building buffers ahead of 2026 regulatory adjustments.
The success of this tender will also inform investor views on how well Nigerian banks manage foreign liabilities at a time when access to global credit markets remains uneven.