Standard Chartered has issued a US$50mn term loan to PTA Bank to finance power projects in East and Southern Africa.

The facility is part of Power Africa, an initiative launched by US President Obama in 2013 to provide access to electricity across Sub-Saharan Africa.

Standard Chartered acted as the sole lender and co-ordinator, mandated lead arranger and facility agent, and the United States Agency for International Development (USAid) as the loan guarantor.

Through the transaction, PTA Bank will channel US$50mn-worth of funding to power generation and energy access projects across East and Southern Africa over a period of eight years. Speaking to GTR, a Standard Chartered spokesperson says the bank cannot yet provide the names of specific beneficiaries.

Commenting on the deal, PTA Bank’s president and chief executive Admassu Tadesse says in a statement: “Our novel partnership with USAid and Standard Chartered to avail longer term funding in this priority infrastructure area is an important contribution to the Power Africa initiative.”

Standard Chartered’s regional CEO for East Africa Lamin Manjang adds: “In collaborating with like-minded institutions like USAid and PTA Bank, we are extending the reach of our capital and funding to power the development and growth of various sectors across the region.”

In September, Power Africa announced new commitments totalling more than US$1bn-worth of debt and finance, which, in addition to the Standard Chartered and PTA Bank loan, will advance deals in Kenya, Nigeria, Senegal, Sierra Leone and South Africa and more.

Power Africa’s partners include African governments and over 130 private sector firms. Standard Chartered is one of the largest private contributors, having already been involved in three projects under the initiative, including Nigeria’s Azaura-Edo plant renovation and a Zambian sector project. In 2014 the bank more than doubled its commitment to Power Africa, increasing its pledge from US$2bn to US$5bn.