Subscriptions for ETI shares begin on Aug 25

Accra, Aug. 18, GNA - Subscriptions for the US$2.5 billion combined Rights Issue and Public Offer of Ecobank Transnational Incorporated (ETI), the holding company of the Ecobank Group, will commence on Monday August 25.

This follows the approval for the registration and listing of the new shares from the regulatory authorities in Nigeria, Ghana and Union Economique et Monetaire Ouest Africaine as well as the holding of the Completion Board Meeting, a requirement of the Nigerian Stock Exchange. ETI is listed on the Ghana Stock Exchange, Nigerian Stock Exchange and on the Bourse Regionale des Valeurs Mobilieres, the regional stock exchange in Abidjan.

Shareholders of Ecobank, the Pan African bank, in May approved a special resolution authorizing the Board to raise additional capital of three billion dollars for operations over the next three years. Out of the amount, 2.5 billion is to be raised through a combination of Rights Issue and Public Offer and the remaining 500 million dollars through a combination of various debt instruments. Details of the offer, that will last for six weeks, indicate that 3.8 billion shares, totaling one billion dollars, will be offered to existing shareholders at US$0.27 per share in the ratio of five new shares for every nine existing shares held as at August 18, 2008. Additional 5.1 billion shares with a total value of 1.5 billion dollars will be offered to the public at US$0.29 per share. This implies that the Rights Issue and the Public offer are being undertaken at discounts of 20 per cent and 12.5 per cent respectively to the 30-day volume weighted average price of ETI shares on all stock markets.

Mr Mande Sidibe, Chairman of ETI, said the proceeds of the offer would be used to further strengthen the Ecobank's group accelerated growth plan to expand its network branches in countries where it currently operated as well as penetrate other countries to consolidate its position as the leading pan African banking group. Specifically the amount will be used to meet the minimum capital requirements of subsidiaries, fund specialized banking operations, expand reach on the continent and beyond as well as invest in technology and training of staff.

ETI's expansion plan includes the opening of new subsidiaries and branches in other middle African countries as well as representative offices and international banking facilities in the major financial centres that have substantial trading and transaction links with Africa, including London, Paris, Dubai and Benjing.

Mr Sidibe said that investors, both on the African continent as well as abroad have a unique opportunity to participate in the offer of a growing company, adding that Existing shareholders have equal opportunity to participate in the public share offer. "The offer is not just the biggest so far on the continent but also the first cross border offer as it is being undertaken simultaneously in the three stock markets on which ETI is listed," Arnold Epke, Group Chief Executive of ETI said.

Mr Ekpe was optimistic of good shareholder and investor response to the combined offer across the three stock markets considering the ETI's strong performance over the years.

Besides the company also completed a non-deal road show in which it held over 70 meetings with institutional investors in 18 cities across North America, Europe, Asia and Africa. "The feedback from the Investors is positive," he added.