Arise B.V. invests $75 million in Ecobank Transnational
Parent company of Ecobank Group, Ecobank Transnational International (ETI) has announced an equity investment of $75 million by Arise B.V., a leading equity investor in financial institutions in Sub-Saharan Africa (SSA).
The equity investment according to a press release by ETI, will be used for general corporate purposes which will include loan growth and strengthening the capital buffers of profitable subsidiaries in two of the Group’s cornerstone regions, Francophone West Africa and Anglophone West Africa.
Speaking on the equity investment by Arise B.V., Group Chief Executive Officer of ETI, Ade Ayeyemi, Group Chief Executive Officer of ETI, stated, “This investment by Arise is a testament to continued support and confidence from our shareholders; their commitment to, and belief in our strategy which we remain focused on executing to deliver value to our shareholders and excellence to our customers. Indeed, in addition to improving our double leverage ratio, it is also a good boost for the firm and its staff.”
“ETI is our primary banking investment in Francophone West Africa and Anglophone West Africa. We are very supportive of ETI’s growth ambitions and its ability to increase financial services to Agri, SMEs & retail customers. Our investment will also strengthen the balance sheet of ETI and provide additional risk capital,” added Deepak Malik, Chief Executive Officer of Arise.
The $75 million investment made by Arise B.V. is a Basel III compliant instrument and is the first Additional Tier 1 (AT1) instrument issued by ETI and a landmark transaction in the sub-Saharan Africa region.
The investment will optimize and improve ETI’s Tier 1 capital.
About Arise B.V.
Arise is a leading African investment company that partners with sustainable, locally owned Financial Services Providers in Sub -Saharan Africa.
Arise’s vision is to contribute to the economic growth in Africa and the prosperity of its people by increasing financial inclusion and employment, strengthening rural development and poverty alleviation.
The company was founded by several cornerstone investors namely Rabobank, Norfund, NorFinance and FMO and currently manages assets in excess of USD 960 million and is operational in over 10 African countries