Stanbic Uganda loan oversubscribed in DubaiBy GERALD BUSINGE in Kampala, Uganda
KAMPALA, (CAJ News) – STANBIC Bank Uganda has signed a US$55 million two-year loan facility today in Dubai, United Arab Emirates.
Emirates NBD Capital Limited was the Sole Co-ordinator and Bookrunner of the financing.
Al Ahli Bank of Kuwait K.S.C.P, Bank of Baroda, SBM Bank (Mauritius) Ltd and The Commercial Bank (Q.S.C.) joined the transaction as Mandated Lead Arrangers.
The financing, which will be used for general corporate purposes, will finance exclusively in the specific sectors of energy, agriculture, mining and quarrying, manufacturing, trade, transport and telecommunications, infrastructure, electricity and water, construction and real estate, was oversubscribed from the initial launch amount of US$ 40 million.
The loan facility pays 275 basis points margin over London Interbank Offered Rate (LIBOR).
Dr Rassem Zok, Chief Executive Officer of Middle East and North Africa: Standard Bank of South Africa Limited, says the fact that Middle Eastern and International banks have returned to participate in this re issue for Stanbic Uganda confirms both the positive outlook for the Ugandan economy and confidence in our Standard Bank Group’s leadership in corporate and investment banking in Sub Sahara Africa.
Since the beginning of 2015 Emirates NBD Capital has arranged a number of syndicated loan transactions for African financial institutions.
Patrick Mweheire, Chief Executive of Stanbic Bank Uganda, says they continue to demonstrate market leadership by completing another successful transaction in the international loan market, in an extended two year tenor at such tight pricing.
“The over-subscription of our syndicated loan transaction further validates the confidence that the international financing community has in our consistent growth story.”
– CAJ News
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