Oceana reels in R1.6 billion term funding

Oceana is Africa’s largest fishing company and home to the Lucky Star brand, which was recently voted the Number One iconic brand in South Africa. The company has nearly 4 000 employees based across South Africa, Namibia and the United States and operates 54 vessels and 8 production facilities across 3 countries on 2 continents, selling products to customers in 41 countries.

Standard Bank has a long-standing partnership with Oceana, having previously supported the company in all their Investment Banking, Global Markets and Transactional Banking requirements. The strength of this relationship, along with the bank’s fishing expertise and position as leading mandated lead arranger and sustainability co-ordinator in the fishing sector, allowed it to structure a comprehensive financing solution that would support Oceana’s strategic growth objectives with a sustainable finance underpin.

As Africa’s largest bank by assets, we are proud to have the opportunity to partner with Africa’s largest fishing company to support their ambitions to enhance sustainability within the fishing sector. The strength of our relationship, along with the bank’s fishing expertise allowed us to structure a comprehensive financing solution that will support Oceana’s sustainability goals” says Justine Streicher, Executive Vice President, Corporate Financing Solutions at Standard Bank.

The bank acted in its capacity as mandated lead arranger, bookrunner, sustainability co-ordinator and lender in the transaction, which consisted of a sustainability-linked overlay based on reducing carbon emissions and improving injury frequency rates in the South African and Namibian operations.

“We are proud to have partnered Oceana on this sustainability-linked facility which aligns with core focus areas in the fishing sector including decarbonisation and improved safety. Having supported Oceana on their previous sustainability-linked facility, this renewed overlay highlights Oceana’s continued commitment to environmental and social risk management and overall sustainability progress” says Rochelle Chetty, Senior Manager, Sustainable Finance at Standard Bank.

Oceana Group CFO, Zaf Mahomed says, “Over the past two years, Oceana has been deliberate about creating balance sheet capacity, to position capital expenditure towards growth. By understanding capex requirements and investing in the right areas of our business, we are delivering on our long-term growth strategy. It's not just about profitability; it's about creating lasting value for our stakeholders and future generations. Through sustainability-linked finance we have been able to transform our business by aligning financial goals with our commitment to environmental responsibility. This partnership and financing are fundamental to our working capital strategy and continues to enhance ESG within the group."

It is important to protect our ocean resources to drive the continued growth of the fishing industry, which currently contributes roughly $24 billion annually to Africa’s economy while creating over 12 million jobs for African citizens. As Africa’s largest bank by assets, we are proud to have an opportunity to partner with Africa’s largest fishing company to support their ambitions to enhance sustainability within the fishing sector.

“The team from Standard Bank demonstrated exceptional performance throughout the transaction, particularly when unexpected challenges arose. Since their appointment as MLA, they consistently provided invaluable advice, seamlessly managed the project, and exceeded expectations to meet our deadlines. The Sustainability and Deal Making teams further strengthened the longstanding relationship between Oceana and Standard Bank, enhancing the transaction with their expert knowledge, commitment to securing optimal deals, and readiness to go above and beyond. Thanks to the Std Bank team for being there, showing up and always delivering sterling service,” says Varsha Maharaj, Executive: Group Treasury.

Reference: World Bank Group. 2024. ‘Africa Program for Fisheries’ [Online] Available: https://www.worldbank.org/en/programs/africa-program-for-fisheries (Accessed 18 June 2024).