Standard Bank unlocks USD50m in funding for Coca-Cola Beverages Africa’s Ethiopia expansion
By Simon Reeves, Standard Bank’s relationship manager for CCBA
Standard Bank has successfully arranged and structured USD50 million in financing facilities for Coca-Cola Beverages Africa (CCBA) to support its expansion strategy in Ethiopia over the next five years.
Standard Bank, Africa’s largest bank by assets, “started its journey with CCBA a few years back and, as the relationship developed, has established itself as a primary banker to CCBA across key Africa geographies in which it operates. We have demonstrated the importance of our partnership with CCBA by offering unique solutions to key concerns, of which this transaction is a prime example,” says Simon Reeves, Standard Bank’s relationship manager for CCBA. The Coca-Cola Company holds a majority stake in CCBA, which is the largest bottler of Coca-Cola beverages in Africa – serving 13 countries on the continent – and eighth largest in the world by revenue.
“This closely aligns with our key business imperative of driving sustainable growth across the continent,” says Stephen Lovell, Head, Corporate Financing Solutions, Africa Regions for Standard Bank. “Standard Bank’s position as sole funder to the deal demonstrates the bank’s ability to provide innovative financing solutions, leverage the strength of its balance sheet and Africa expertise to bring deals like this to life.”
With a presence in markets that match CCBA’s operations in Africa and having established a representative office in Addis Ababa in 2015, Standard Bank was able to provide insight into the local market that best supported CCBA’s growth ambitions in Ethiopia – a high growth region for Coca-Cola.
Ethiopia boasts the second-largest population on the African continent. While consumption of soft drinks is low compared to major markets, demand is expected to swell as the middle class rises and consumers are empowered with spend.