Ecobank Nigeria has proven its financial strength and improved liquidity position by repaying 50% of its $300 million Eurobond nearly seven months ahead of the scheduled maturity in February 2026. This move highlights the bank’s strategic transformation plan, which is already yielding positive financial results and boosting investor confidence.
According to a statement from the bank, the repayment was part of its ongoing tender and exit consent solicitation for its 7.125% Senior Notes due 2026. The early repayment occurred on July 8, 2025, and as of July 11, 2025, the bond was trading near par at $99.00, a clear signal of investor trust in Ecobank’s ability to meet its financial obligations at maturity.
The repayment was made possible due to the bank’s improved liquidity from loan repayments and the early redemption of promissory notes by its parent company. Ecobank assured that it has firm liquidity plans to fully repay the remaining 50% of the bond by the original maturity date.
In a strategic move, the bank also secured bondholders’ consent to remove the capital adequacy ratio (CAR) covenant from the Eurobond agreement. This was necessary as Ecobank’s CAR had dropped to 7.65% in 2024, slightly below the 10% regulatory requirement for national banks. The drop was mainly attributed to the Naira depreciation, which significantly affected the bank’s foreign currency loan portfolio.
To address this, Ecobank has launched a transformation program aimed at improving revenue, asset quality, and operational efficiency. According to internal sources and early financial results, the transformation efforts are beginning to pay off.
The bank’s preliminary half-year results (H1 2025) show:
A 30% growth in revenue, rising from N87.6 billion in H1 2024 to N113.7 billion in H1 2025
A surge in gross impairment charges by over 200%, reaching N32.8 billion compared to N10.7 billion in the same period last year, signaling more aggressive write-offs and provisioning
A 90% increase in profit before tax, hitting N13.5 billion from N7.1 billion in H1 2024
A liquidity ratio well above the regulatory minimum of 30%, showing strong short-term solvency
One of the pillars of Ecobank’s ongoing transformation is the asset quality war room, which focuses on intensive loan recovery and restructuring. This unit has helped the bank recover significant funds, including $6 million (over N9 billion) from a long-standing delinquent obligor in 2025.
Furthermore, more than N170 billion in loans that were previously classified as Stage 2 (high risk of default) have now been upgraded to Stage 1, indicating consistent repayments and improved creditworthiness over the past year.
The bank’s loan recovery efforts have also benefited from the recent increase in Nigeria’s oil production, which has improved the cash flow of obligors in the oil and gas sector. With many of these clients meeting the terms of their loan restructuring agreements, Ecobank’s overall non-performing loan (NPL) portfolio has significantly reduced.
Ecobank says it will continue to prioritize cost-cutting measures, enhance operational efficiency, and strengthen its capital base as part of its transformation goals. The bank remains focused on sustainable growth, capital restoration, and enhancing shareholder value.
Industry analysts view this early bond repayment as a strong signal of confidence, not just in Ecobank’s financial health, but also in the effectiveness of its management and turnaround strategy. The move also positions Ecobank Nigeria as one of the few banks in the region able to manage external debt efficiently in a challenging macroeconomic environment.
