QNB

QNB acquires an additional 11.01% stake in Ecobank Transnational Incorporated, the leading pan-African bank

Posted on : Mon, 15 Sept 2014

Doha – 15 September 2014. QNB, “One of the World’s Strongest Banks” has today announced the acquisition of an additional holding of 11.0%* (2,047,877,260 ordinary shares) in Ecobank Transnational Incorporated (Ecobank). QNB Group’s total stake in Ecobank is now 23.5%1. The cost of this additional holding was equivalent to USD283m. Today’s acquisition was funded through existing resources and QNB will account for Ecobank as an Associate in accordance with International Financial Reporting Standards. QNB Capital and Morgan Stanley are acting as financial advisors to QNB in relation to this transaction. This enables QNB Group to become the largest shareholder whilst strengthening the partnership with Ecobank, a leading pan-African bank and is a fundamental step towards QNB’s strategy of being a MEA Icon by 2017.

Ecobank was set up in 1985 in Lomé, Togo, where it is headquartered. Ecobank is the leading pan-African bank with a presence in 36 countries across the African continent and in 4 other countries across the globe. Ecobank is one of the top three banks (by assets) in 14 of the countries in which Ecobank is present. As at June 2014, Ecobank had USD23.4b of assets and had generated USD255m of profit before tax (for the 6 months to 30 June 2014) and operates across its unique network of 1,241 branches, 2,500 ATMs and 16,245 POS terminals servicing over 10.8 million customers. With 20,114 employees, Ecobank is the largest employer in the financial sector industry in Middle Africa.

The QNB Group stated ambition of being a MEA Icon by 2017 is brought closer to realisation through the potential opportunities and commercial benefits resulting from this partnership. This move further consolidates the growth strategy pursued by The QNB Group over recent years.

QNB Group, through its subsidiaries and associates (including Ecobank), operates in 61 countries and 3 Continents around the world.

QNB was recently recognized as “The Best Bank in The Middle East” by Euromoney Magazine and was voted “One of the Top 50 Safest Banks in the World” by Global Finance Magazine in 2013.

*The two stakes include the current outstanding ordinary shares and the conversion of QNB’s convertible preference shares