Deals

Tongaat Hulett, USD42m, Sole Arranger & Underwriter

Dec 31, 2018

Standard Bank acted as sole arranger and underwriter for Tongaat Hulett Xinavane (Tongaat) who required USD42 million of funding in local currency to repay shareholder loans from a parent company in South Africa.

The parent funding was used to expand the Mozambican operations. Tongaat owns over 50% of the Mozambican sugar market share and is the only refined sugar producer in Mozambique.

This transaction established Standard Bank as their key banker and largest funding provider to Tongaat while maintaining its house banker status.

 

Standard Bank joined efforts across their investment banking networks with its sector expertise (based in Mozambique and South Africa) which ensured successful structuring and execution of the facility. Standard Bank’s response time and innovative solution set it apart from its local and international competitors.

Tongaat Hulett Xinavane is owned by Tongaat Hulett Limited which is listed on the Johannesburg Stock Exchange.

Tongaat Hulett Limited owns a second milling company located in Mozambique -  Beira province along with a cane growing company. As an agriculture and agri-processing business, they focus on the complementary feedstocks of sugarcane and maize. It is the second largest sugar producer in South Africa.

Our global sector knowledge and on the ground presence in Mozambique allowed for a bespoke facility to meet the funding requirements of the company.

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