Wednesday, 11 June 2008

Ecobank to raise more capital

The African financial services revolution continues as one of Africa’s largest players prepares to raise more capital. The bank, which has its headquarters in Lome, Togo, has annouced that it intends to acquire a 75 per cent majority stake in Kenyan mortgage lender East African Building Society.

Ecobank is one of the successful African banking franchises. We believe this is because it is considered an independent regional institution that is not associated with any one country or interest group. In effect, each of its subsidiaries is viewed as a local bank. . Ecobank has a network of over 450 branches with offices in 22 countries including Benin, Burkina Faso, Cameroon, Cape Verde, Central Africa, Côte d’Ivoire, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Niger, Nigeria, Sao Tome, Senegal, Sierra Leone, Tchad, Togo, Gambia, Rwanda, Congo Brazzaville and Malawi, with plans to establish more presence in East and Southern Africa.

Ecobanks current asset base is $6.5 billion. It has a footprint in a number of African countries, and listings on the Nigerian, Ghanian and the Bourse Régionale des Valeurs Mobilieres, a regional stock exchange serving eight West African countries. The acquisition and further expansion in East Africa will be financed through a share sale on each of these exchanges targeting to raise $2.5 billion.

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