Stanbic Finances MTN
5/21/2012 6:31:17 PM -
Stanbic Bank Ghana and Standard Bank South Africa, both members of the Standard Bank group, have successfully raised a record GH¢410 million to finance some operations of Ghana's leading telecom operator, MTN.
Additionally, the syndication team which comprised 16 local banks and four international banks also raised USD 60 million.
MTN Ghana stated that it appointed Stanbic Bank Ghana Limited 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.
Under the deal, Stanbic Bank Ghana acted as the sole bookrunner and global coordinator, which run the process to raise the local portion amounting to GH¢410 million.
The amount 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.
At the end of the process, it was realized that the Ghana Cedi facilities were oversubscribed by 35 per cent while the USD facility was oversubscribed by 92 per cent.
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, was able to demonstrate its ability to raise funding from multiple sources in both local and foreign currency.
Funds raised in the bond issue will be used by MTN to expand and improve its network in Ghana going forward.
Michael Ikpoki, Chief Executive Officer (CEO) of MTN Ghana, commenting on the deal 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 up us take our business to the next level where the consumer will be the ultimate winner.'
The Managing Director of Stanbic Bank Ghana, Alhassan Andani, for his part, stated that '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.
Kwamina Asomaning, Director of Stanbic Bank's Corporate and Investment Banking Unit, noted that the bank which is '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, organizations such as MTN and other like minded institutions across all sectors.'
As a member of Africa's largest Bank, Stanbic Bank Ghana is positioned 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 Standard Bank'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 in Ghana has raised capital in Ghanaian Cedis on this scale.
Mandated lead arrangers for the syndication are: Stanbic Bank Ghana Limited, Ghana Commercial Bank Limited, Ecobank Ghana Limited and Ecobank Capital, Standard Chartered Bank Ghana Limited and Barclays Bank of Ghana Limited.
Mandated Lead Arrangers in the USD Facility are: FirstRand Bank Limited acting through its Rand Merchant Bank Division and Export Development Canada.
By Emelia Ennin Abbey