Ecobank capital base up 46pc

April 24, 2009

, NAIROBI, Kenya, Apr 24 – Ecobank has increased its capital base by 46.7 percent following its recent public offer.

The bank\’s capital base stands at Sh94.2 billion up from the Sh50.2 billion before the offer.

“This increase in our capital at a time of uncertainty in the financial markets is a reflection of our shareholders’ confidence in our strategy,” said Group Chief Executive Officer (CEO) Arnold Ekpe.

Last August, Ecobank Transnational Incorporation (ETI) launched a hybrid rights issue and public offer, simultaneously, in the three West African stock markets – the Ghana Stock Exchange, the Nigerian Stock Exchange, and the Bourse des Valeurs Mobilières Régionales (BRVM) in West African Economic and Monetary Union (UEMOA) countries.

The offer was the first of its kind, extending across three different market jurisdictions, as well as other markets across Africa where local regulation allowed.

As a result of the offer, the Ecobank Group’s shareholder base has grown from 7,633 shareholders before the start of the offer to 140,000 shareholders today.

“The additional capital will be used to recapitalise existing Ecobank Group subsidiaries in order to position them adequately for the increasing competitive banking environment,” Mr Ekpe said.

In the next stage of its capital increase programme, the Ecobank Group proposes to raise additional capital to further strengthen its capital base and to consolidate its position.

New Ecobank Kenya CEO Tony Okpanachi said that part of the capital will be injected in Kenya for branch expansion, upgrade of information technology and business development.

The new CEO who was appointed last week said that the bank has embarked on an aggressive expansion strategy geared towards increasing its service delivery channels such as ATMs, Points of Sale, expansive branch network, Ecobank Express Outlets, in-plant branches, debit or credit card business and motivated direct sales agents.

ETI entered the Kenyan market in June last year after it acquired 75 percent shareholding in EABS Bank Limited. 

The bank has 15 branches in Kenya and currently operates in 28 countries across Africa.

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