Standard Bank provides funding for SA and Mozambique government’s ROMPCO acquisition
29 Jun 2022
Country
South Africa
Year
2022
Sector
Oil and Gas
Business Unit
Corporate and Investment Banking
Specific Role
Sole mandated lead arranger and underwriter
Standard Bank recently provided the requisite finances to support state-owned energy companies in South Africa and Mozambique to increase their stakes in the ROMPCO gas pipeline.
This is one of the largest deals Standard Bank has completed in the Oil & Gas sector and consists of a R4.2-billion payment guarantee made on behalf of the buyer and a R3-billion debt loan.
Acting in its capacity as the sole mandated lead arranger and underwriter, Standard Bank successfully assisted the South African Gas Development Company (iGas) and the Companhia Mocambiçana de Gasoduto (CMG) each in acquiring 40% ownership, while Sasol maintained a 20% minority.
The success of the transaction is the result of cross collaboration from various Standard Bank teams, including Corporate and Investment Banking (CIB), Investment Banking (IB) and Transactional Products and Services (TPS), to ensure maximum value for the client, the Central Energy Fund (CEF).
This acquisition is a landmark transaction for Standard Bank and the CEF, who is mandated by Government to ensure energy security in South Africa. This strategic investment will enable the CEF to leverage important oil and gas resources in its goal to achieve long-term energy security in the country.