Norfund and FMO to take 14.1% stake in Ecobank

Jun 19, 2019 | Ecofin Agency

Norwegian Investment Fund -Norfund- and the Netherlands Development Finance Company -FMO- have entered an agreement that could win them interest in the capital of Ecobank Transnational Incorporated (ETI). Operation will be made through Arise BV, an investment firm owned by FMO, Norfund, and Rabobank.

The 14.1% stake is held by the International Finance Corporation (IFC). Let’s recall the latter became ETI’s shareholder following the conversion into shares of a convertible loan it had granted the bank.

Ecobank and IFC share a strong commitment to supporting sustainable economic growth in Africa by building inclusive financial markets. IFC looks forward to strengthening our strategic partnership with Ecobank to bring financial services to people and places that need them the most,” said Lars Thunell, then vice president of the Washington-based institution, in 2010.

The pan-African group Ecobank remains in all its markets, but has recently been struggling to create value for its shareholders and reward them. Since 2013, the value of ETI shares on the Nigerian Stock Exchange has fallen by 11%. Ecobank expects the ongoing operation to be completed in the coming months.

Source: Ecofin Agency