29 June 2011
Stanbic Bank and Gold Fields sign landmark agreement
Stanbic Bank in Ghana, a member of the Standard Bank Group (SBG), has closed a US$60-million senior revolving loandeal with Gold Fields Ghana Limited for the fleet replacement for its mines at Tarkwa and Abosso. The loan facility has a life span of three years and it is the single largest transaction closed locally by a mining company within the last couple of years.
Alhassan Andani the Managing Director of Stanbic Bank in Ghana, says the activities of the extractive companies in the country including Gold FieldsGhana has put the country on the international commodities market, bolstering the nation's emerging market growth focus and status.
"There remains enormous potential to develop further and sustain this growth path, and that is where we come in as a financial institution. Stanbic Bank is committed to supporting those crucial sectors of the economy by partnering the right actors to make things happen" he says.
Mr. Peter Turner, Executive Vice President of Gold Fields West African Operations, emphasised the importance of the deal on the mining firm's operations. "With this facility in place, Gold Fields operations in West Africa have fully matured and would no longer depend solely on shareholder loans for its working capital and future investments.
"Since 2010, the Abosso mine has been working towards 'owner' mining. We are confident that the facility will help the Abosso mine realize this objective; we are excited about this partnership," he added.
Stanbic Bank's corporate and investment banking unit in Ghana partnered its parent company, Standard Bank Group to structure the deal for the mining firm. The capabilities of the unit in project financing have resulted in various landmark deals in Ghana including the funding of the plush Movenpick Ambassador Hotel project and the Accra Shopping Mall project.
Sam Botchway, Head of Investment Banking at Stanbic Bank in Ghana, says the deal with Gold Fields Ghana is yet another manifestation of Standard Bank Group's unique project financing capabilities.
"This landmark deal underscores the structuring and execution capacity of Stanbic Bank and Standard Bank Group as a whole. Our vast network in Africa and across the globe enables us to leverage skills and synergies across borders to provide solutions and connect our clients to resources to move their business forward," he says.