Stanbic secures $55m for agriculture, energy
KAMPALA, SEPTEMBER 15 – Stanbic’s Ugandan yesterday, signed a US$ 55 million two year term syndicated loan facility with a consortium of Middle Eastern and international banks for on-lending to energy, agriculture, mining and quarrying, manufacturing, trade, transport and telecommunications, infrastructure, electricity and water, construction and real estate sectors.
The loan is another feather in the cap for Stanbic which recently concluded a $114 million facility for Uganda’s largest Telco, MTN Uganda.
“We are pleased that Stanbic Bank Uganda, continues to demonstrate market leadership by completing another successful transaction in the international loan market, in an extended two year tenor at such tight pricing. The over-subscription of our syndicated loan transaction further validates the confidence that the international financing community has in our consistent growth story,” said Stanbic Uganda CEO Patrick Mweheire.
Emirates NBD Capital Limited was the Sole Co-ordinator and Book runner of the financing. Al Ahli Bank of Kuwait K.S.C.P, Bank of Baroda, SBM Bank (Mauritius) Ltd and The Commercial Bank (Q.S.C.) joined the transaction as Mandated Lead Arrangers. The facility which will be repaid at a 275 basis points margin over LIBOR, was oversubscribed from the initial launch amount of US$ 40 Million.
“The fact that Middle Eastern and International banks have returned to participate in this re‑issue for Stanbic Uganda confirms both the positive outlook for the Ugandan economy and confidence in our Standard Bank Group’s leadership in corporate and investment banking in Sub‑Sahara Africa,” Dr. Rassem Zok, CEO MENA (Middle East and North Africa), Standard Bank of South Africa Limited (DIFC Branch), said at the signing.
Ahmed Al Qassim, CEO, Emirates NBD Capital said since the beginning of 2015 the bank has arranged a number of syndicated loan transactions for African financial institutions. “We are pleased to have again partnered with Standard Bank Group in yet another landmark transaction for its subsidiary, we are proud to be the main banking partner for Standard Bank Group and its subsidiaries in the GCC. We consider ourselves as the gateway to Middle-Eastern investors for global institutions, and we are currently working with institutions from various geographies and introducing them to the region”.
Faisal Lalani, Head – Institutional & International Banking, Emirates NBD Bank said “In our efforts to grow our global market share, we have been pursuing business from our counterparts in Africa including Standard Bank Group. Our efforts have resulted in us winning mandates to run their previous syndications for Kenya and Uganda respectively. This transaction serves as another testament of our growing relationship with Standard Bank Group”.