Saturday, October 25, 2014

CfC Stanbic signs Sh14.24 billion loan facility

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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