The FINANCIAL — Standard Chartered Zimbabwe, together with Commerzbank Aktiengesellschaft and Investec Asset Management Proprietary Limited acted as Joint Mandated Lead Arrangers (MLAs) in the recently concluded USD60 million, three year syndicated term loan facility for FBC Bank Limited (FBC).
The facility carries a comprehensive guarantee from African Export-Import Bank (Afreximbank), the regional development bank established to finance and support regional trade, manufacturing and economic growth. Standard Chartered and Afreximbank are also joint co-ordinators for this facility, according to Standard Chartered.
The syndication is significant in that the funds will introduce valuable liquidity into the market, as well as enable FBC to support strategic growth sectors such as education, telecommunications and infrastructure – each integral to promoting long term economic growth.
Real benefits for the local economy
Through these structured lending facilities, the local economy expects to benefit directly from the funding of initiatives such as the country’s first DNA testing laboratory, established by the National University of Science & Technology; Tel One’s scaling up and development of the local telecommunications infrastructure and Zimbabwe Power Company’s purchase of spares and equipment to support power generation at the Hwange Thermal Power Station.
“This syndication will not only support FBC’s successful business strategy in Zimbabwe, but also enable us to deliver tangible benefits and make a difference in the lives of individual Zimbabweans. The effective management of capital is essential for the well-being of our economy, and this transaction is a leading example of how banks can come together to create positive and wholistic solutions for multiple organisations and institutions. We appreciate being part of such a progressive financial partnership,” said Webster Rusere, Managing Director of FBC Bank Ltd said.
“With the continuing effort by Zimbabwe to address the tight systemic liquidity challenges confronting it, this syndication strengthens the capacity of the country’s trade finance banks to continue their role of financing trade. Through this transaction, Afreximbank is boosting domestic liquidity, thereby promoting Zimbabwe’s economic growth,” Jean-Louis Ekra, President of Afreximbank said.
Standard Chartered, Commerzbank and Investec Asset Management are all participants within the syndicated term loan. Financial syndications are valuable commercial collaborations which increase the total value of finance available to institutions, while effectively managing risk for syndicated partners.
“Standard Chartered remains committed to using its strengths and capital to benefit and support the local economy. This is yet another example of our promise to be Here for good and facilitate transactions which generate positive outcomes for many generations to come. Over the last 12 months, Standard Chartered has delivered over USD300 million of support to key growth sectors in Zimbabwe, such as agriculture, trade, commodities and others – a 20% increase from 2012,” Ralph Wantungwa, Chief Executive Officer for Standard Chartered Zimbabwe, said.
With Africa’s development demands increasing along with the continent’s growth potential, syndicated loans provide a wholistic solution for all stakeholders in supporting larger scale financing requirements, according to Standard Chartered.
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