Standard Chartered has finalised a three-year US$60mn term loan facility, arranged by a syndicate of lenders and with an Afreximbank guarantee, for FBC Bank (FBC) in Zimbabwe.
Standard Chartered Zimbabwe, Commerzbank and Investec Asset Management are the joint mandated lead arrangers on the deal, with Standard Chartered and Afreximbank also acting as joint co-ordinators.
Commenting on Afreximbank’s role in the facility, the development bank’s president, Jean-Louis Ekra, adds: “This syndication strengthens the capacity of the country’s trade finance banks to continue their role of financing trade.”
The facility aims to introduce significant liquidity to the Zimbabwean domestic banking market. According to FBC’s managing director, Webster Rusere, the bank will use the funds to buttress key growth sectors of economic growth including education, telecommunications and infrastructure.
“This transaction is a leading example of how banks can come together to create positive and holistic solutions for multiple organisations and institutions,” says Rusere.
According to CEO of Standard Chartered Zimbabwe, Ralph Wantungwa, the bank has delivered US$300mn of support in the country in the last year, covering Zimbabwean agriculture, trade and commodities, among other areas.