Fixed Income Analysis /
Nigeria

Ecobank Transnational: Q1 review – Decent start to the year

    Tolu Alamutu
    Tolu Alamutu

    Credit Research Analyst, Banks

    Tellimer Research
    1 May 2019
    Published by

    We reiterate our Buy recommendation on the Ecobank Transnational (ETINL) 9.5% 2024 bond. The unexpected resignation of the CEO did raise some concerns. However, decent results for Q1 and publication of the much-anticipated end-2018 capital ratios has helped address these concerns. 

    We also have a Buy recommendation on the Ecobank Nigeria (ECOTRA) 8.75% subordinated bond, which is callable later this year. 

    Although PBT in the Nigeria business fell significantly yoy, we believe the parent entity and its shareholders will continue to support this business.