The Standard Bank of South Africa Limited signed a US$560-million, 36 months term loan facility in London today. The transaction was launched at US$375-million and an oversubscription of US$185-million was obtained, allowing for a final take of US$560-million.
The facility is priced at 100 basis points over Libor.
There are 14 banks participating in the transaction and the geographic split of lenders includes banks from the United States of America, the United Kingdom, Europe, the Middle East and the Far East.
Dr Arno Daehnke, Head of Treasury and Capital Management and Standard Bank Group, says that he was impressed with the response to this transaction, given that The Standard Bank of South Africa Limited had last entered the international loan market in October 2012.
"The funding market is currently liquid and we wanted to capitalise on that. A 50% oversubscription from a group of 14 top international banks has certainly made this extended club loan a great success."
Dr Daehnke said that the funding raised would be used for general corporate purposes, including trade-related finance as well as infrastructure-, power- and mining-related lending transactions in sub-Saharan Africa.
Mizuho Bank, Ltd is the Co-ordinator, Bookrunner and Mandated Lead Arranger, Documentation, Publicity and Signing Agent. Abu Dhabi Commercial Bank PJSC; Bank of America Merrill Lynch International Limited; BayernLB; BNP Paribas SA, South Africa Branch; Citi; Commerzbank Aktiengesellschaft; First Gulf Bank PJSC; HSBC Bank Plc, Johannesburg Branch; JP Morgan Limited; Standard Chartered Bank; Sumitomo Mitsui Banking Corporation Europe Limited; The Bank of Tokyo-Mitsubishi UFJ, Ltd and Wells Fargo Bank, NA, London Branch are Bookrunners and Mandated Lead Arrangers. Bayerische Landesbank is the Facility Agent.