Ecobank Nigeria Limited has revealed an invitation for tenders concerning the remaining US$150 million of its US$300 million 7.125% Senior Note Participation Notes maturing in 2026.

This offer commenced on Friday, November 28, 2025, providing eligible noteholders the opportunity to submit their securities prior to the bond’s original due date of February 16, 2026.

As per the press release, investors whose notes are accepted will receive US$1,000 for every US$1,000 in principal, along with accrued and unpaid interest up to but not including the settlement date. The transaction is anticipated to be completed on or before December 31, 2025. Ecobank characterized the tender offer as part of its “proactive approach to liability management,” aimed at enhancing capital planning flexibility and maintaining an optimal debt structure amid changing macroeconomic conditions. Participation is entirely at the discretion of noteholders.

This recent action follows a similar step taken four months earlier, when Ecobank Nigeria repaid US$150 million, which was half of the Eurobond, as a strategic move to improve liquidity. That July 2025 buyback was conducted through a tender offer and exit consent process and marked a significant achievement in the bank’s balance sheet restructuring. The early repayment was aided by improved cash flows, strong loan recoveries, and advanced settlement of promissory notes from its parent company, Ecobank Transnational Incorporated. At that time, the bond was trading close to par, indicating stable investor confidence in the bank’s creditworthiness.

In the past, bondholders had consented to the removal of a capital adequacy ratio covenant linked to the Eurobond. This covenant had been triggered earlier in 2024 when the bank’s capital adequacy ratio dropped to 7.65%, below the 10% regulatory minimum for national banks, primarily due to naira depreciation.

Since then, Ecobank has been implementing a recovery strategy focused on profit enhancement, cost control, and capital backing from its parent. The bank had also reiterated its plan to redeem the remaining US$150 million at maturity in February 2026, contingent on market conditions, however, the new tender offer now accelerates that schedule, facilitating nearly complete debt repayment two months earlier than planned.

Ecobank Nigeria’s commitment to de-risk its balance sheet before 2026 may mitigate refinancing risks and uphold investor confidence. Given the high global borrowing costs and ongoing macroeconomic unpredictability, early liability reduction is viewed as a reassuring indicator of liquidity strength. Furthermore, this initiative provides flexibility for investors aiming to adjust their portfolios before the year's end while allowing the bank to align its debt structure with continuous capital recovery efforts.

This approach aligns with the Group as the parent company, Ecobank Transnational Incorporated Plc, reduced its borrowed funds by 15% to N2.83 trillion as of September 2025, which equates to 6% of total assets, down from 8% in December 2024.

Ecobank Nigeria serves as one of the four regional pillars of the Ecobank Transnational Incorporated Group, and its performance is closely intertwined with the overall financial health of the Group. In the third quarter of 2025, the Group achieved one of its strongest quarterly earnings in recent times, with pre-tax profit increasing 47% year-on-year to N394.6 billion. Profit after tax maintained similar momentum, rising 48% to N268.5 billion, despite the bank absorbing higher impairment charges and incurring a one-off loss from discontinued operations.

This impressive quarterly performance continued throughout the nine-month period. ETI concluded the first nine months of 2025 with a pre-tax profit of N1.01 trillion, reflecting a 42% year-on-year rise, while profit after tax grew 43% to N702.4 billion. On the expense side, the Group upheld strong discipline, with operating costs increasing by only 3% to N446.2 billion in Q3 2025, a significant feat given the high inflation and currency pressures impacting various African markets.