CfC Stanbic secures Sh13bn long-term loan from Dubai

 

CfC Stanbic Bank executive director Mike Blades. PHOTO | FILE 

By EDWIN OKOTH

In Summary

• CfC Stanbic Bank Thursday signed a Sh13.5 billion two-tranche term loan as it seeks to boost its business in Kenya and the region.

CfC Stanbic Bank Thursday signed a Sh13.5 billion two-tranche term loan as it seeks to boost its business in Kenya and the region.

The multimillion dollar transaction was arranged by 14 key institutions including Emirates NBD Capital Limited (ENBD) and Mashreqbank PSC.

It was oversubscribed by Sh10 billion.

“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 after the transaction in Dubai.

Other lead arrangers of the multimillion dollar transaction included Al Ahli Bank of Kuwait K.S.C.P, AfrAsia Bank Limited, Bank Muscat SAOG, Commerzbank Aktiengesellschaft, Filiale Luxemburg, Investec Bank Limited, SBM (Mauritius) Ltd and United Arab Bank P.J.S.C.

Last year, the South Sudan turmoil and currency devaluation ate into CfC Stanbic’s otherwise good full-year earnings the previous year, pushing it back 14 per cent  to Sh4.9 billion net profit from Sh5.7 billion posted in 2014.

READ: CfC Stanbic profit dips as Juba forex crisis erodes Sh7bn

Standard Bank Group Head of Corporate and Investment Banking International Gert Vogel said the financing, which had initially targeted to raise Sh10 billion, was oversubscribed, a move that will further boost the bank’s liquidity across the networks.

“I am delighted to be in Dubai for this special occasion, our DIFC branch has been instrumental in assisting to raise liquidity for the various entities of the Standard Bank Group, including South Africa, Nigeria, Zambia, Uganda and today Kenya,’’ Mr Vogel said.

“We are grateful to the dynamic regional financial institutional community for their continued support and look forward to maintaining and growing these relationships.”

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.

CfC owner, South African Standard Bank, is the largest lender in Africa.