By NKIRUKA NNOROM

Ecobank Transnational Incorporated Plc, ETI, has said that International Finance Corporation, IFC, has invested a total sum of N15.6 billion ($100 million) in the bank by way of common equity.

The bank said in a notice sent to the Nigerian Stock Exchange, NSE, that the investment followed signing of share subscription agreement between the two organisations in July, 2012.

According to the bank, the investment was made through IFC’s managed Funds: the IFC Capitalization (Equity Fund) L.P., the Africa Capitalization Fund Ltd and the IFC ALAC Holding Company II.

ETI noted that it has issued 1.25 billion shares in favour of the respective Funds at the agreed price of USD 8 cents per share.

The notice indicated that ETI issued a total of 596.59 million units of shares to IFC Capitalisation (Equity Fund) L.P at $47.73 million; 340.909 million shares were issued by the bank in favour of African Capitalisation Fund Ltd at $27.27 million, while IFC ALAC Holding Company II got 312.50 million shares after investing the sum of $25 million in ETI, thereby bringing the total investment to $100 million.

“The transaction will strengthen Ecobank’s Tier One Capital and further enhance its ability to grow its business across the African continent, the bank said in an accompanying note”, while adding that appropriate steps have been initiated for the listing of the shares on the Nigerian Stock Exchange as well as on the Ghana Stock Exchange and the BRVM (Abidjan).

It would be recalled that ETI recently entered into a cooperation agreement with Portugal’s third largest commercial bank, Banco Espírito Santo (‘BES’) to develop trade and investments between Portugal and Africa.

The Memorandum of Understanding (“MOU”), which was signed at BES’ Lisbon headquarters envisages joint effort and cooperation on the network of customers and branches of both banks to support and encourage trade and investments between Portugal and Africa