International banking giant, the Qatar National Bank (QNB Group) today announced the acquisition of a 12.5 percent stake (both ordinary and convertible preference shares) in leading pan-African bank Ecobank Transnational Incorporated.

The acquisition of the stake, calculated by Reuters to be worth around N36.25 billion ($223.4 million), was described by the middle-eastern bank as a fundamental step towards its strategy of being an MEA Icon, the largest bank in the Middle East and Africa, by 2017. The bank is currently the second largest in terms of assets, only behind South Africa’s Standard Bank.

Part of a statement sent to Ventures Africa by QNB read, “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”.

Reuters News Agency reports that the transaction would make QNB the second-largest shareholder in Ecobank after South Africa’s state-owned Public Investment Corporation Ltd. It is the Qatari lender’s second acquisition in Africa in recent times, in March 2013, it completed the purchase of Societe Generale’s Egyptian business for $2 billion.

Ecobank’s CEO Albert Essien said last month that he expects South Africa’s Nedbank to accept the bank’s offer to convert its $285 million loan and add a further $206 million to get a 20 percent stake in it. With the new deal with QNB, Essien says he expects Ecobank’s capital adequacy ratio to hit 18.7 percent of assets by year-end, after all the debt conversions to equity, up from 17.5 percent in the first six months of the year, and almost 3 percent higher than Nigeria’s minimum capital adequacy ratio of 16 percent.

Established in 1964, QNB is Qatar’s first government-owned commercial bank with an ownership split evenly between the Qatar Investment Authority and the private sector. QNB operates in 26 countries and 3 Continents around the world. QNB Group already has a significant trading presence in Africa with branches, subsidiaries and associates operating in the following countries: Algeria, Egypt, Libya, Mauritania, South Sudan, Sudan and Tunisia.
While Ecobank Transnational Incorporated (Ecobank), set up in 1985, is headquartered in Lomé Togo with a presence  in 36 countries across the African continent and in 4 other countries across the globe. 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.

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