11 December 2009
Standard Bank has signed a six-year US$100-million (about R747-million) loan agreement with three European development finance institutions. The loan will be used to fund infrastructure projects and project finance lending in Africa.
The loan was coordinated by Germany’s Deutsche Investitions- und Entwicklungsgesellschaft (DEG), along with Netherlands’ FMO and the Austria’s Oesterreichische Entwicklungsbank (OeEB).
“The deal will hopefully serve as a platform for future cooperation between Standard Bank, DEG and the other lenders across a range of different banking products and geographies,” said Standard Bank Africa CEO Clive Tasker in a statement last week.
It is the first transaction between Standard Bank of South Africa and DEG, one of Europe’s largest development finance institutions.
“The tranche, made available by several development finance institutions, will enable Standard Bank to finance investments in the infrastructure sector,” said DEG chairman Bruno Wenn.
Boosting continental trade, investment
Standard Bank has been very active in securing international credit facilities to fund trade and investment on the African continent, especially in light of the global financial crisis.
In April, it received a $400-million credit line from the International Finance Corporation’s Global Trade Liquidity Programme to support trade in sub-Saharan Africa.
In September, it raised a further US$1-billion loan facility with four major Chinese banks: the Industrial and Commercial Bank of China (Macau), Bank of China, China Development Bank, and China CITIC Bank.
And, in October, it signed a further $150-million loan agreement with the Japan Bank for International Cooperation to boost trade on the continent.
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