Standard Bank Group acted as the Mandated Lead Arranger on the transaction to provide development finance for the completion of the Novare Gateway Mall. This was done with a bespoke transaction structure which mitigated all the transaction risks which included fully hedging the currency risk on the USD portion and structuring debt serviceability within underlying macro environment. In addition, the Group acted as the primary lenders for the dual currency facility by leveraging its balance sheets in Nigeria and South Africa to provide Naira and USD liquidity to the client. The Standard Bank Group also performed ancillary roles such as Security Agent, Facility Agent, Account Bank and Insurance broker.
The transaction was structured as a dual currency facility with structural elements to address regulatory limitation on local USD funding. The climax of USD liquidity challenges and economic recession in Nigeria presented a challenging time during which to structure the transaction. The borrower’s Return of Equity (ROE) was significantly enhanced by Standard Bank funding 25% of the total development cost.
Anchored by Shoprite and Genesis Deluxe Cinemas, the Novare Gateway Mall is a single level development with a spread of more than 65 line shops. Since the Mall commenced trading in November 2017, it has attracted new international entrants to the Nigerian retail sector as well as existing notable brands due to its strategic location.
Our real estate finance team offers term and development funding through a variety of bespoke debt structuring and advisory solutions specific to the capital needs of our clients.
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