Standard Bank has successfully closed a USD 1.3 billion PXF Facility to Sonangol

Standard Bank has successfully closed, a USD 1.3 billion PXF Facility to Sonangol, the state-owned national oil company of Angola (which included a USD 300 million uncommitted Accordion Facility). 

The facility has been structured as a Pre-Export Finance (“PXF”) loan to a subsidiary of Sonangol (“SFL”), incorporated offshore. Under terms of a receivables purchase agreement between Sonangol and SFL, Sonangol will sell to SFL certain export receivables generated by Sonangol and crude oil deliveries will be made pursuant to commercial contracts with eligible off-takers.

SFL in turn transfers the proceeds of the facility to Sonangol to fund its CAPEX and OPEX requirements. Standard Bank became the first African Commercial Bank to participate as Underwriter and Bookrunner for the Sonangol debt raise in recent years.

Standard Bank acted as co-IMLAB (Initial Mandated Lead Arranger and Bookrunner) alongside Soc Gen, Stan Chart and Afrexim by providing a fully funded underwrite commitment of USD 1 billion. The syndication was well received by lenders in the market, which resulted in an oversubscribed syndication book, with 16 lender participants funding into the deal. The oversubscribed book unlocked liquidity of USD 300 million for Sonangol, which was executed as an Accordion Facility.