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.