Stanbic Bank Uganda Ltd, a subsidiary of Standard Bank Group Limited, has signed a $55 million two-year term loan facility in Dubai. Emirates NBD Capital Limited was the sole co-ordinator and bookrunner 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 financing, which will be used for general corporate purposes, including, but not limited to finance exclusively in the specific sectors of energy, agriculture, mining and quarrying, manufacturing, trade, transport and telecommunications, infrastructure, electricity and water, construction and real estate, was oversubscribed from the initial launch amount of $40 Million. The facility pays 275 basis points margin over LIBOR.
Dr Rassem Zok, CEO MENA, Standard Bank of South Africa Limited (DIFC Branch), stated that “the fact that Middle Eastern and International banks have returned to participate in this reissue 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 SubSahara Africa”.
Ahmed Al Qassim, CEO, Emirates NBD Capital said, “Since the beginning of 2015 we have 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”.
On his part, Patrick Mweheire, Chief Executive of Stanbic Bank Uganda said they 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 the syndicated loan transaction, he said, further validates the confidence that the international financing community has in the bank’s consistent growth story.
