Stanbic to anchor $300 million African power and infrastructure facility
|KAMPALA,SEPTEMBER 23 – Stanbic parent Standard Bank of South Africa, has committed $33 million in core funding to a $300 million syndicated loan to fund power and infrastructure projects in Africa.
The 12-year funding line for Standard Bank that was signed on the side lines of the US-Africa Business Forum in New York City is also supported by the Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution, and Wells Fargo Bank.
Standard Bank of South Africa will provide $33 million from its balance sheet to support transactions financed by the facility with half of the total loan facility ring-fenced for power projects in line with US President Barrack Obama’s Power Africa initiative while $100 million will be available to support investment in other strategic infrastructure projects.
“Power and infrastructure play a crucial role in the economic development of Africa. We are delighted to be part of such an important initiative and look forward to working with OPIC and Wells Fargo to promote sustainable economic growth and to make a real difference to the lives of the people of Africa. Standard Bank has the experience, knowledge and presence in Africa to make this project a resounding success,” said Sim Tshabalala, Standard Bank’s Group Chief Executive.
OPIC President and CEO Elizabeth Littlefield said OPIC was excited to collaborate on an initiative that will have a long-lasting impact on the lives of millions throughout Africa. “By supporting both infrastructure and power projects, this forward-thinking loan facility brings badly-needed capital to the table and will pave the way for future development in Africa to take root and grow.”
On the other hand, Wells Fargo said it was pleased to sponsor the landmark facility which will utilize proceeds to finance renewable energy projects in low income, IDA-eligible countries in Africa, where such infrastructure is key to promoting environmentally sustainable development.