Corporate News
Pedestrians walk past a CFC Stanbic Bank branch in Nairobi. PHOTO | FILE
By CHARLES MWANIKI, cmwaniki@ke.nationmedia.com
In Summary
- The two year facility, which is the bank’s debut in the international syndicated loan market, was targeting $125 million but with an oversubscription of $35 million CfC Stanbic was able to extend it to $160 million.
CfC Stanbic
has upped the battle for control of corporate lending market with a
Sh14.24 billion ($160 million) syndicated loan from the international
market for onward lending to companies in the region.
The two year facility, which is the bank’s debut in the
international syndicated loan market, was targeting $125 million but
with an oversubscription of $35 million CfC Stanbic was able to extend
it to $160 million. The facility is priced at 2.5 per cent above the
prevailing London Interbank Offered Rate (Libor) rate. The three month
dollar Libor rate has been 0.233 per cent.
CfC Stanbic chief executive officer Greg
Brackenridge said that the funds will be used for general corporate
financing within the bank, including trade finance.
“As a debut borrower in the international loan
market, I am extremely impressed that such a sizeable amount has been
raised for the bank in a two year tenor. The oversubscription indicates
that the investor banks have shown a keen appetite to join this
transaction,” said Mr Brackenridge.
Standard Chartered Bank London was the
co-coordinator and mandated lead arranger for the issue. Other
participating banks included Al Ahli Bank of Kuwait, Commerzbank of
Luxemburg, Emirates NBD Bank and Mizuho Bank Ltd. Lenders were drawn
from the US, the UK, Europe, the Middle East, the Far East and
Mauritius.
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