USD 400 million Sustainability-Linked facility closed

The Standard Bank of South Africa Limited (“Standard Bank”) has successfully signed a USD 400 million sustainability-linked syndicated term loan.The facility, co-ordinated by Industrial and Commercial Bank of China Limited, London Branch (“ICBC”), Mizuho Bank, Ltd (“Mizuho”) and Standard Chartered Bank (“Standard Chartered”), is Standard Bank’s second sustainability-linked syndicated loan. 

The margin on the loan is linked to Standard Bank’s performance against two sustainability key performance indicators (“KPIs”).  The KPIs align with the Standard Bank Group’s sustainability strategy and relate to committed financing of renewable energy power plants and social projects in South Africa and across the continent. The facility is structured as a two-year loan with an option for Standard Bank to elect to extend for a further year.   

Standard Bank is focused, primarily through its sustainable finance division, on providing financial products and services that support positive ESG outcomes, including green and social loans and bonds, sustainability-linked loans and bonds, sustainable trade and working capital solutions and impact investing. The Group targets mobilising more than ZAR 250 billion in sustainable finance by 2026.

Sasha Cook, Head of Sustainable Finance at Standard Bank said, “Concluding our second sustainability-linked loan and embedding sustainability KPIs into the funding arrangements demonstrates the Group’s commitment to sustainablity, which is at the heart of our purpose: Africa is our home, we drive her growth. We celebrate closing this transaction shortly after publishing our updated Group Sustainable Finance Framework, which will support green and social treasury instruments executed across the Group.”

Paul Burgoyne, Head of Treasury at Standard Bank said, "We appreciate the support of our partner banks across the globe as they support us in continung to fund our clients across our African footprint.”

Mizuho and Standard Chartered acted as the sustainability coordinators, Mizuho acted as  the facility agent, Standard Chartered as the documentation agent, and ICBC as the syndication agent.

The deal was well received in the loan market and was over-subscribed with commitments from 16 geographically diverse institutions. As a result of the oversubscription the transaction was upsized to USD 400 million from the launch amount of USD 300 million.

 

The full bank list comprises:

Co-ordinators, Bookrunners and Mandated Lead Arrangers
Industrial and Commercial Bank of China Limited, London Branch
Mizuho Bank, Ltd.
Standard Chartered Bank

Mandated Lead Arrangers:
Commerzbank Aktiengesellschaft
Emirates NBD Bank (P.J.S.C.)
The Export-Import Bank of China
The National Bank of Ras Al Khaimah (P.S.C)

Lead Arranger:
Bank of China Limited, Johannesburg Branch
State Bank of India, Johannesburg
Bank of Communications Co., Ltd. Johannesburg Branch
Commercial Bank of Dubai PSC
SMBC Bank International plc

Arrangers
Qatar National Bank (Q.P.S.C.) Paris branch
Banque Misr - Dubai Branch
China Construction Bank Corporation, Johannesburg Branch
Mashreqbank PSC