afrol News, 26 August - Ecobank Transnational Incorporated (ETI) has simultaneously launched the first-ever cross-border shares to raise $2.5 billion to expand operations in ten African countries.

This biggest offer in sub-Saharan Africa is expected to run through 3 October, 2008. The launch took place in Ghana, Benin, Burkina Faso, Cote d'Ivoire, Guinea-Bissau, Mali, Niger, Nigeria, Senegal and Togo.

According to the Mr. Mike Ashong, the managing director of Ecobank Development Corporation, 56% of the expected capital would be invested into existing subsidiaries in 25 countries, 22% for mergers and acquisitions of "vulnerable" banks. It will invest 14% in new markets.

The bank will also invest heavily on technology and upgrading of processing equipment.

Its $2.5 billion equity offer consists of $1 billion rights issue and $1.5 billion public offer.

ETI also wants to raise $500 million through debt issues. Under its offer, over $3.5 billion ordinary shares of $0.025 each and $0.27 per share in a ratio of five new shares for every nine existing shares would be held payable in full on application and an offer for subscription of more than $5.1 billion ordinary shares of $0.29 dollars payable in full on application.

If all the shares have not been offloaded by October 3, 2008, they would be entered into the Global Depository Receipt on the London Stock Exchange.

Headquartered in Lome, Togo, ETI that began with $100 million in 1984, has spread actoss 25 countries in Africa.

Ghana's finance and economic planning minister, Mr Kwadwo Baah-Wiredu, who launched the offer, said banking and financial sector is the most positioned sector capable of reaping the expected benefits of the oil find within the medium to the long term.

"At the end of May 2008 for instance, total assets of the banking sector grew by 37.1% year-on-year to GHC 8.4 billion. Credit growth to enterprises and households remained robust and broad based. Credit to the private sector and institutions went up by GHC 1.7 billion, depicting 58% annual growth as at May 2008. Credit to the private sector alone rose by 50.3 per cent (GHC 1.2 billion) as at May 2008 compared to 47.8 per cent during the same period in 2007," he said said.

Mr. Baah-Wiredu assured the government's commitment to develop capital market as evidenced by divestiture of its holdings in the state insurance company and the Ghana Oil Limited.

Ghanaian minister also announced the automation of the Ghana Stock Exchange.

By staff writer

© afrol News

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