Standard Bank secures US$1 billion loan from top international banks

Apr 15, 2016


The Standard Bank of South Limited (SBSA) has signed a US$1 billion, 36-month, term loan facility in London today.  The transaction was initially launched on 4 March 2016 at US$ 600 million and was well oversubscribed allowing for a final take up of US$1 billion. The facility is priced at 120 basis points over Libor.

The geographic split of lenders includes banks from Europe, the Far East, the Middle East, the United Kingdom and the United States of America. There are 18 banks participating in the transaction.  The Coordinators, Bookrunners and Mandated Lead Arrangers are: Mizuho Bank, Ltd.; Bank of China Limited, Johannesburg Branch; Bayerische Landesbank; China Construction Bank Corporation, Johannesburg Branch; HSBC Bank plc; ICBC (London) plc; Industrial and Commercial Bank of China (Asia) Limited and Standard Chartered Bank.)

The Bookrunners and Mandated Lead Arrangers are Agricultural Bank of China, (DIFC Branch) and Emirates NBD Bank PJSC the  Mandated Lead Arrangers are Citibank NA, DIFC Branch and Commerzbank Aktiengesellschaft, Filiale Luxemburg and the Lead Arrangers are Bank of Taiwan; CTBC Bank Co, Ltd; The Export-Import Bank of the Republic of China; Taiwan Shin Kong Commercial Bank; Taiwan Cooperative Bank, Offshore Banking Branch and The Bank of New York Mellon.Bayerische Landesbank was appointed as the Facility Agent.

Standard Bank has a strong track record of borrowing in the international loan market going back to 1995.  To date the group has secured 55 syndicated loans amounting to US$15 billion.

Dr Arno Daehnke, Group Financial Director Designate, Standard Bank Group Limited, said: “This is indeed a very special and remarkable transaction for us, being one of the largest syndicated loans that The Standard Bank of South Africa Limited has raised.  We are delighted with the amount raised as well as the pricing achieved.  Standard Bank’s ability to raise a 36 month jumbo facility involving 18 of the world’s leading banks, is a reflection of our standing in the international community.”

The funding will be used for general corporate purposes, including trade-related finance as well as infrastructure-, power- and mining-related lending transactions in sub-Saharan Africa. This is in support of Standard Bank Group’s vision to be the leading financial services organisation in, for and across Africa, delivering exceptional client experiences and superior value.

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