International Finance Corporation (IFC) has announced the completion of its divestment from Ecobank Transnational Incorporated (ETI), Ecobank, while Arise BV has stepped in.
The pan African bank had notified the Nigerian Stock Exchange (NSE) and its stakeholders that the IFC and the funds managed by the IFC Asset Management Company were in discussions to dispose their shareholding to Arise BV.
Ecobank, in a statement on NSE, Wednesday, confirmed that the transaction had been completed and that as a consequence, Arise had become a shareholder of the bank with a 14.1 percent stake.
The statement said J.P Morgan Securities Plc acted as the sole placement agent and sole financial advisor to the IFC and funds managed by the AMC in the transaction.
“As part of its ordinary asset portfolio rotation, the IFC has divested its shareholdings in Ecobank to Arise BV, a highly-reputable investment house with a strong developmental mandate for Africa,” Paolo Martelli, IFC’s Senior Advisor said.
“The IFC invested in Ecobank for more than 10 years and our investment has helped to increase access to credit for entrepreneurs and the Small and Medium Enterprises in sub-Saharan African countries (including International Development Association countries) in which the bank operates, achieving the development impact we sought when we made the investment.”
He noted that IFC will be looking to invest in other projects as it hopes to maintain its commitment to the development of Africa.
In his own words, the Chief Executive Officer, Arise BV, Deepak Malik, noted that the company was happy to acquire the 14.1 percent shareholding in Ecobank, which according to him, is in line with its commitment to investing in Africa to help create prosperity on the continent.
He noted that the transaction with Ecobank would see Arise BV collaborate with the bank to advance financial inclusion on the continent.
Speaking, the Chief Executive Officer, Ecobank, Ade Adeyemi, expressed Ecobank’s happiness in welcoming the new investors.
He said he was looking forward to a strong synergy in the companies’ core objectives, especially in ensuring and enshrining financial inclusion and the potential for the development of the continent