17 May 2012
Stanbic Bank announces landmark $300m loan syndication for MTN Ghana
Stanbic Bank Ghana and Standard Bank South Africa, both members of the Standard
Bank Group, have in what has been recorded as the largest ever local currency syndication,
successfully raised GHS 410 million to finance some operations of Ghana's leading
telecom operator, MTN.
In addition, USD 60 million was raised by the syndication team, which comprised
of 16 local banks and four international banks.
MTN Ghana appointed Stanbic Bank Ghana and Standard Bank of South Africa as the
global coordinator for the deal, as well as its security and facility agent. Standard
Bank also participated in the transaction.
Stanbic Bank Ghana, acting as the sole bookrunner and global coordinator, ran the
process to raise the local portion amounting to GHS 410 million. It is the largest
local currency deal outside the annual COCOBOD syndication transactions which are
usually in foreign currency. There was a positive take-up of the remaining $60-million
by foreign banks. The Ghana Cedi facilities were oversubscribed by 35% while the
USD facility was oversubscribed by 92%.
MTN Ghana wanted a bank with a proven international and African footprint to facilitate
and participate in the transaction as there has not been a local currency syndication
of this size before. Standard Bank, through its African and international network,
demonstrated its ability to raise funding from multiple sources in both local and
Funds raised in the bond issue will be used by MTN to expand and improve its network
Commenting on the deal, Chief Executive Officer of MTN Ghana, Michael Ikpoki, said:
"This is a demonstration of how we see our business in Ghana. By looking within
to raise this amount of money, we are indicating to the people of Ghana that we
have absolute confidence in the economy and more importantly, the Ghana Cedi. This
financing will help us take our business to the next level where the consumer will
be the ultimate winner."
Managing Director of Stanbic Bank Ghana, Alhassan Andani, said, "MTN has been a
business leader over the years and we at Stanbic Bank are delighted to be playing
a key role in mobilising these funds. This landmark transaction is a testament to
our collective drive to support the Ghanaian economy. It will create jobs and give
hope to our people."
Stanbic Bank Ghana has led the execution of a number of high profile transactions
leading to the bank being voted as Best Investment Bank in 2011 by the prestigious
EMEA Finance magazine.
Director of Stanbic Bank Ghana Corporate and Investment Banking unit, Kwamina Asomaning,
said: "As a leading emerging markets bank and currently Ghana's Best Investment
Bank, we are serious about playing a transformative role in Ghana's corporate sector
in partnership with government, organisations such as MTN and other like-minded
institutions across all sectors. As a member of Africa's largest bank, Stanbic Bank
Ghana is in the best position to harness resources across the group to deliver results
that impact on the lives of Ghanaians."
"The requirement by MTN Ghana was for a global bank with a strong African footprint.
Our appointment was consequently an endorsement of the Standard Bank Group's strategy
to have Africa at our core as we extend and deepen our business across the continent.
This is a landmark deal that confirms our credentials as a leading investment bank
not only in Ghana but across Africa."
This is the first time a multinational company in Ghana has raised capital in Ghanaian
Cedis on this scale.