- US$200m term loan facility for the Development Bank of Southern Africa (“DBSA”)
- Facility is backed by the Multilateral Investment Guarantee Agency (“MIGA”) with Standard Chartered playing a leading role as the sole Global Coordinator and Book runner, Facility Agent with DZ Bank AG as Joint Mandated Lead Arranger
- Loan facility will support infrastructure development projects in Africa
Johannesburg, South Africa: Standard Chartered Bank announced today the signing of a US$200,000,000m term loan to the Development Bank of Southern Africa (“DBSA”) backed by a guarantee from the Multilateral Investment Guarantee Agency (“MIGA”), the political risk insurance and credit enhancement arm of the World Bank Group. DZ Bank AG acted as Joint Mandated Lead Arranger.
The facility will be utilised for on-lending to support investment in key infrastructure & development projects in Africa. Infrastructure funding is a significant focus of the Bank’s growing project & export finance business across Africa where the need for infrastructure is critical.
The deal secures a long term USD funding for “DBSA” at very competitive terms achieving reduced overall cost of borrowing and diversification of financing sources. This facility will indirectly accelerate sustainable socio-economic development on the continent.
This partnership signals a clear commitment to develop innovative structures and platforms to boost infrastructure development in Africa.
Richard Etemesi, CEO South Africa & Southern Africa for Standard Chartered commented, “Infrastructure and Energy are the key catalysts to realising Africa’s growth potential. We are therefore pleased to partner with MIGA to extend this facility to the Development Bank of Southern Africa. This transaction is yet another example of how local market knowledge, paired with our global expertise in project & export finance, enables us to forge partnerships which promote long term, sustainable economic development. We remain committed to building sustainable partnerships which can help overcome some of the infrastructure challenges the continent faces”.
Patrick Dlamini, Chief Executive of the Development Bank of Southern Africa said, “The DBSA is committed to financing Africa’s infrastructure development goals. We value partnerships such as this one with Standard Chartered to further accelerate our mandate and make a positive development impact on the continent.”
“MIGA guarantees will play a critical role in enabling long-term finance for infrastructure projects across the region,” Sarvesh Suri, Director, MIGA Operations Group said.
For further information, please contact:
Development Bank of Southern Africa “DBSA”
(011) 313 3716, 082 337 6512
Notes to Editors:
About Standard Chartered
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Standard Chartered Bank Johannesburg Branch pursues a focused network strategy offering corporate and commercial clients support in cross-border capital, investment opportunities, assistance with expansion into new markets and facilitation of strategic partnerships. The Bank offers international banking expertise, products and a well-established network to South African and global companies looking to expand within South Africa, across Africa and beyond into the world’s rapidly expanding regions. Given Standard Chartered’s unique presence in Africa, Asia and the Middle East, the Bank is well-positioned to support Africa’s diverse and lucrative trade and investment corridors.
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The Development Bank of Southern Africa (DBSA) is a South African state-owned enterprise and a leading development finance institution working across the African continent. Established in 1983, its primary purpose is to promote economic development and social development as well as regional integration through infrastructure investment and development. For more information, visit www.dbsa.org
MIGA was created in 1988 as a member of the World Bank Group to promote foreign direct investment in emerging economies by helping mitigate the risks of restrictions on currency conversion and transfer, breach of contract by governments, expropriation, and war & civil disturbance; and offering credit enhancement to private investors and lenders. For more information, visit www.miga.org