IFC makes $100m investment to secure 7.2% stake in Ecobank Group

The International Finance Corporation (IFC) on July 17, 2012 announced a $100 million investment in Ecobank Transnational Incorporated (ETI), a move which will give the World Bank Group member about 7.2% shares in the Pan-African bank based in Togo.

The investment will also strengthen Ecobank’s capital base, scale up in key markets, and expand its offerings across its network of 32 African countries, many of which are fragile and in conflict-affected states.

“Three funds managed by IFC Asset Management Company—the IFC Capitalization Fund (IFC Cap Fund), the IFC African, Latin American, and Caribbean Fund (IFC ALAC Fund), and the Africa Capitalization Fund—will invest up to $100 million in a subscription of ETI shares, for a combined stake of about 7.2%,” the IFC said in a statement.

“We are pleased to increase our shareholding in what we consider to be one of Africa’s most impressive banks,” said Chief Executive Officer of IFC Asset Management Company, Gavin E.R. Wilson.

The IFC’s investment comes as part of a successful fundraising programme by ETI, which has also attracted large institutional investors, such as Nedbank and Public Investment Corporation of South Africa.

In 2009, IFC became a shareholder in ETI following the conversion of a $100 million loan into an equity stake of 9.2%. This is the second time IFC Asset Management Company funds have made investments in ETI. In June 2010, IFC Cap Fund and IFC ALAC Fund committed $150 million in loans, with half the amount convertible into equity.

Former IFC Vice President for Latin America and the Caribbean, sub-Saharan Africa, and Western Europe, Thierry Tanoh, has become CEO-designate of Ecobank.

By Ekow Quandzie