CFC Stanbic Bank secures Sh13 bn two-tranche term loan to boost its regional business

By Dhahabu Writer

CFC Stanbic bank has secured a two tranche term Sh13.6 billion ($135 million) loan for its general corporate operations including trade finance, the firm announced Monday.
The loan was arranged by 14 key institutions; Dubai-based Emirates NBD Capital, the investment banking arm of Emirates NBD, and Mashreq, another Dubai lender were the lead organisers.
A statement by NBD says that the team acted as lead arrangers and book runners for the financing, to the CFC Stanbic Bank, Kenya which is partly owned by South Africans.
“We are extremely pleased that CfC Stanbic Limited has entered the loan market again in the two/three year tenor. The funding raised here will be deployed within our business in Kenya to support our customer franchise,” CfC Stanbic Bank executive director Mike Blades said in a statement delivered after the transaction in Dubai.
Other lead arrangers are; Al Ahli Bank of Kuwait, AfrAsia Bank, Bank Muscat, Commerzbank Aktiengesellschaft, Filiale Luxemburg, Investec Bank, SBM Bank (Mauritius) and United Arab Bank.

The Bank experienced some difficulties in its local operations owing to the South Sudan turmoil and currency devaluation of the Kenyan Shilling. These circumstances saw the bank’s otherwise good performance drop as it struggled to stay in business.
It’s 2015 full year earnings for instance dropped by a massive 14 per cent  to Sh4.9 billion net profit from Sh5.7 billion posted in 2014.
Standard Bank Group head of corporate and investment banking international, Gert Vogel, said the financing from Dubai was oversubscribed.
The initial plan was to raise Sh10 billion, but the bank ended up with Sh13.6 billion which will further boost the bank’s liquidity across its networks.
Emirates NBD Capital chief executive, Ahmed Al Qassim, said the firm had arranged a number of syndicated loan transactions for various African financial institutions and was pleased to have partnered with Standard Bank Group’s landmark transaction.
In October 2015 the bank secured a $155 million dual tranche loan to fund its business activities. Emirates NBD was the sole book runner for that financing.


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