30 August 2012
Stanbic Bank Ghana signs US$21m agreement with Fuel Trade Limited
Stanbic Bank Ghana, a member of the Standard Bank Group, has concluded a US$21-million
loan deal with Fuel Trade Limited to construct fuel storage tanks.
The 80,000 metric tons facility to be located at Tema, Ghana, supports Fuel Trade's
long-term strategy to be a leader in the fuel storage business. The arrangement
is also in response to a new legislation by the National Petroleum Authority (NPA)
that makes it mandatory for bulk distribution companies to own their own storage
facilities or maintain long term access to storage facilities.
The five-year facility is in line with a strong relationship between Stanbic Bank
Ghana and Fuel Trade that includes the provision of a US$75-million trade line to
the company for the importation of fuel products.
Speaking at the signing ceremony, Executive Chairman of Fuel Trade Limited Chris
Chinebuah said he was impressed with the deal-making abilities of Stanbic Bank Ghana
that has resulted in a major deal for his company.
"We have not been with Stanbic for a long time but already we are very impressed
with your professionalism and zeal to duty. This is truly an African Bank. We are
very comfortable to be associated with you and we consider this deal as the first
of many to come. I assure you our relationship will be second to none. This deal
will help open up the fuel storage industry to us."
Kwamina Asomaning, Head of Corporate and Investment Banking at Stanbic Bank Ghana,
said: "This is a significant milestone in our history because this deal has been
sealed at a time we are celebrating 150 years of moving Standard Bank Group's customers
forward. We are proud to be associated with Fuel Trade's success story. This is
another testimonial to our commitment to provide the critical support needed to
grow corporate Ghana."
The bulk distribution for fuel products in Ghana is dominated by three top traders
who control close to 70% of the market.
Fuel Trade is a leading bulk distributor of petroleum products and the largest importer
of liquefied petroleum gas.