Standard Chartered Bank has signed a $200 million term loan to the Development Bank of Southern Africa, DBSA.
The loan facility which is backed by a guarantee from the Multilateral Investment Guarantee Agency (“MIGA”), the political risk insurance and credit enhancement arm of the World Bank Group. DZ Bank AG acted as Joint Mandated Lead Arranger is meant for on-lending to support investment in key infrastructure & development projects in Africa.
Infrastructure funding is a significant focus of the Bank’s growing project & export finance business across Africa where the need for infrastructure is critical.
The deal secures a long term USD funding for “DBSA” at very competitive terms achieving reduced overall cost of borrowing and diversification of financing sources. This facility will indirectly accelerate sustainable socio-economic development on the continent.
This partnership signals a clear commitment to develop innovative structures and platforms to boost infrastructure development in Africa.
Richard Etemesi, CEO South Africa & Southern Africa for Standard Chartered commented, “Infrastructure and Energy are the key catalysts to realising Africa’s growth potential. We are therefore pleased to partner with MIGA to extend this facility to the Development Bank of Southern Africa. This transaction is yet another example of how local market knowledge, paired with our global expertise in project & export finance, enables us to forge partnerships which promote long term, sustainable economic development. We remain committed to building sustainable partnerships which can help overcome some of the infrastructure challenges the continent faces”.
Patrick Dlamini, Chief Executive of the Development Bank of Southern Africa said, “The DBSA is committed to financing Africa’s infrastructure development goals. We value partnerships such as this one with Standard Chartered to further accelerate our mandate and make a positive development impact on the continent.”
“MIGA guarantees will play a critical role in enabling long-term finance for infrastructure projects across the region,” Sarvesh Suri, Director, MIGA Operations Group said.