Ecobank, SA’s PIC formally sign $250m investment agreement

On May 30, 2012

The South African government-owned Public Investment Corporation (PIC) of South Africa and the Ecobank Transnational Incorporated (ETI) on May 29, 2012 signed a Subscription Agreement by which the PIC will invest $250 million in the common equity of the ETI.

The signing ceremony which took place during the African Development Bank’s Annual Conference saw Mr. Nhlanhla Musa Nene, the Chairman for PIC and Deputy Minister of Finance for South Africa and Mr. Elias Masilela, Chief Executive Officer of PIC initialing the document on behalf of PIC. Mr. Arnold Ekpe, Group Chief Executive of Ecobank signed for Ecobank.

The PIC in late April 2012 announced that it will invest $250 million in ETI.

The $250 million share purchase will be effected by the issuance of 3,125,000,000 shares in Ecobank representing 19.58% of the total outstanding number of shares, according to a statement issued by Ecobank.

Following this investment, the PIC is expected to take a seat on the board of Ecobank, the statement said.

By Ekow Quandzie