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Standard Bank and Lango conclude complex real estate finance deal in Africa

28 Feb 2021

Country
Nigeria | Angola | Mauritius | Ghana | Zambia
Year
2021
Sector
Real Estate
Specific Role
Sole lead arranger, sole transactional banker, co-hedge provider and co-lender

Standard Bank has entered into an agreement to provide Mauritius-based Lango Real Estate (Lango), with a portfolio financing structure worth US$300 million.

This is the largest debt transaction of its kind in Sub-Saharan Africa (excluding South Africa) and is also the first cross-country portfolio real estate financing deal on the continent.

This was a complex deal as assets had to be cross-collateralised into one structure spanning five jurisdictions, as well as numerous lenders and teams.

Lango’s portfolio includes 11 assets, of which eight are prime income generating, across four countries: Ghana, Zambia, Nigeria and Angola, and is focused on retail and commercial assets. These include the Standard Bank office and convenience stores in Ghana, and the Manda Hill Shopping Centre in Zambia. In Nigeria, the assets include The Wings, an A-grade office complex in Victoria Island, Lagos, and the Circle Mall retail asset in Lagos.

The portfolio financing structure provided by Standard Bank allows for more seamless loan administration compared to typical single-asset finance structures. As the portfolio grows, existing lenders can expand their funding on an expedited basis and additional lenders can be introduced if needed. This facilitation is particularly important as there are multiple jurisdictions involved, giving rise to legal and regulatory complexity. In addition, the single price and the scalability of the structure offers enhanced flexibility and supports the client in its growth ambitions while allowing it additional time to focus on its core business of property investments and acquisitions.

Standard Bank is the sole mandated lead arranger and co-lender and was selected as the sole transactional banker to all entities involved in the Lango transaction – currently over 23 legal entities and growing. Standard Bank also offered joint hedging services with another bank. This was a complex deal as assets had to be cross-collateralised into one structure spanning five jurisdictions, as well as numerous lenders and teams.

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