Corporate and Investment
Airtel Ghana Limited, Loan Facility, USD100 million
31 Oct 2018
Country
Ghana
Year
2018
Sector
Telecoms Media and Technology
Business Unit
Corporate Financing Solutions
Specific Role
Mandated Lead Arranger, Underwriter, Security Agent, Lender
Stanbic Bank Ghana and The Standard Bank of South Africa (Standard Bank) served as mandated lead arranger, underwriter, security agent and lender for the loan facility to Airtel Ghana Limited.
Standard Bank provided the full funding of USD100 million for the facility and it represents the first term financing Standard Bank has arranged for an Airtel entity. This was a large benchmark transaction in the Ghanaian market and was successfully concluded within a short timeframe.
As a result of the financing relationship, Standard Bank has now been elevated to Airtel’s core relationship bank in Ghana. The transaction structure provides Airtel Ghana with substantial flexibility, allowing the ongoing merger processes with Millicom Ghana to be concluded and synergies to be established.
In addition to the term loan, Stanbic Ghana is also supporting the business with an overdraft facility. Airtel Ghana is the surviving entity following a merger of Ghana’s mobile phone companies Airtel and Millicom (managed under the brands Airtel and Tigo). The operations have been merged into a joint venture on an equal basis and are currently run under a joint brand called Airtel Tigo.
The co-operation between the bank’s onshore and offshore centres ensured that a tailor-made facility could be structured that takes account of local practices and international lending standards. It also ensured foreign exchange (FX) availability and timely payment execution. Standard Bank’s debt structuring expertise, execution track record and knowledge of the telecom sector were key to winning this mandate which, combined with our in-country banking practice, enabled us to provide an all-round customer service.