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Standard Bank supports Norsad’s goal to build a better Africa, with a jointly arranged ZAR680m sustainability linked funding

19 Feb 2024

Country
Botswana
Year
2024
Sector
Financial Institutions
Business Unit
Investment Banking
Specific Role
Co-Arranger, Lender and Sustainability Coordinator
Standard Bank is proud to announce that it has jointly provided African private debt firm, Norsad Capital Limited with a ZAR680 million 6-year sustainability-linked term loan to assist with its growth ambitions and impact investment goals.

Norsad Capital Limited is an impact investment company offering debt financing solutions to mid-market growth companies in Southern Africa that can generate positive impact and deliver strong financial returns. Founded in 1990, the firm has offices in Botswana and South Africa and services clients in the financial services, healthcare, industrial, manufacturing, clean-tech, consumer products and services sectors.

Standard Bank acted in its capacity as co - arranger, lender and joint sustainability coordinator in the transaction, which is the first of its kind in the Botswana financial institutions sector and a second on the investment banking Botswana balance. The sustainability KPIs that will be measured throughout the life of this facility include the following: 

  • Customers reached by financial institutions: Measuring the additional annual number of customers reached by financial institutions
  • Women and youth jobs: Measuring additional annual number of women and youth jobs supported by Norsad

For over 3 decades, Norsad has invested over USD500 million in more than 150 companies that clearly demonstrate positive impact. The firm aims to create a better Africa and positively impact the lives of 100 million Africans by 2030. Through its tailor-made debt finance solutions, Norsad supports the growth of profitable African companies by enabling them to have substantial and ongoing social impact through the services and employment they provide.

Norsad provides direct debt financing of between USD5 million and USD15 million to mid-market companies for growth and development. The firm is a long-term funding partner that empowers companies to achieve their strategic goals and provides funding for businesses seeking growth capital or looking to scale through acquisitions.

Environmental, social and governance (ESG) considerations are central to the firm’s investment thesis, and Norsad believes that impact investing must be defined by intentionality (setting out with a strategy towards positive impact), return (a sound investment based on sustainability) and measurability (the transparent monitoring of benefits).

The firm has 4 impact areas:

  • Sustainable livelihoods: Contributing to job creation and boosting people’s capacity to provide for themselves by funding well-managed, mid-sized firms and high-impact small and medium enterprises
  • Financial inclusion: Extending credit to companies that provide access to useful and affordable financial services—savings, transactions, payments, credit and insurance—as access to financial services can contribute to eliminating poverty, creating jobs, reducing gender inequality and accessing education and healthcare
  • Gender equality: Funding companies that are majority owned by women and embrace female representation at all levels in the workplace, as well as offering products and services aimed specifically at improving the lives of women and girls
  • Climate and clean energy: Supporting the green transition, including providing sustainable infrastructure finance to develop renewable energy, water and sanitation, and green buildings

Standard Bank is committed to promoting the sustainable economic development of our continent and is proud to have the opportunity to support clients such as Norsad who have similar goals. Our ability to support this transaction further demonstrates our continued support of Norsad Capital Limited and our commitment to the client as a strategic partner whilst putting us in a strong position for future opportunities.