Africa Loans

Standard Bank has signed a $1bn syndicated loan with 43 banks on the ticket, marking another success for South Africa’s banking industry despite suffering rating downgrades earlier this year.

Investec has had an overwhelming response to its $300m loan, which was launched back in June, with 30 banks on the ticket taking commitments over $650m despite downgrades to the credit rating of both the borrower and its sovereign, South Africa.

Kenya has opted to extend a $750m loan which is due to mature in two months, due to the onset of violence after its election result making alternative funding difficult.

South African lenders, Investec and Standard Bank’s loans are due to sign this week, along with United Biscuits' acquisition loan, which is expected to close tomorrow.

South Africa has had a bumpy ride this summer with the sovereign downgrade and the introduction of a new controversial mining charter in June. Despite that, the loan market has proved its resilience.

South African gold mining company Harmony Gold signed a $350m loan, making it the first in its industry to take out a loan since a new mining charter was introduced in June.

Standard Bank has offered banks five different participation levels on its $750m syndicated loan, which it expects to grow to $1.25bn once commitments come in.

Loan bankers in South Africa are pining for more deals, to curb the compression of margins as the ranks of lenders to the region are swelled by money from the Middle East and Asia.

Standard Bank is planning to launch a $750m syndicated loan, and hopes to drum up enough interest to enlarge it to $1.25bn.

Ghana Cocoa Board held a successful roadshow in London on Friday for its annual cocoa harvest loan financing, according to a banker on the deal.

Etisalat has been given until Friday to transfer all its shares in Etisalat Nigeria to a syndicate of 13 Nigerian banks, after talks on restructuring a $1.2bn loan from 2013 fell through.

Etisalat Nigeria is in the “advanced stage” of its negotiations with 13 local banks over the restructuring of a $1.2bn loan taken out in 2013, according to the company.