Standard Chartered Bank and the Land and Agricultural Development Bank of South Africa (Land Bank) has signed a $300m Term loan facility, backed by a guarantee from the Multilateral Investment Guarantee Agency (MIGA), the political risk insurance and credit enhancement arm of the World Bank Group.
The deal secures long-term USD funding for Land Bank at very competitive terms achieving a reduced overall cost of borrowing and diversification of financing sources. The facility has a door-to-door tenure of 10 years and will help increase long-term liquidity for the benefit of the agricultural sector in South Africa. The loan is denominated in USD, however, the financing structure will enable Land Bank to obtain liquidity in South African Rand (ZAR) for its lending operations.
This transaction is a clear testimony of Standard Chartered’s commitment to boost South Africa’s agricultural sector, which is one of the main drivers of the South African economy. The facility will support Land Bank in its core business of promoting agricultural productivity, growth and job creation as well as promote food security in the country.
Saif Malik, head of global banking, Africa for Standard Chartered commented: “In line with our commitment to be Here for Africa, Standard Chartered Bank is delighted to facilitate the funding of a key sector like agriculture."
source: bizcommunity.com
