Standard Bank Group has won four Deal Of The Year titles in recognition of its capabilities and achievements in implementing project finance deals across Africa over the past year.
Project Finance magazine’s 2011 Deal of the Year Awards recognise the best European and African deals.
Standard Bank Group walked away with the Africa Oil & Gas Deal of the Year for the refinancing of the RompCo gas pipeline in Mozambique; Africa Mining Deal of the Year for the Boseto Copper Mine in Botswana; Africa Power Deal of the Year for the Kivuwatt project in Rwanda, and Africa Renewables Deal of the Year for the Addax BioEnergy project in Sierra Leone.
Richard Gush, Chief Executive of Corporate and Investment Banking (Africa), says the accolades are testament to the group’s expertise in finance for major projects in the specialist areas of oil and gas, mining and metals; and power and infrastructure. In addition, the awards highlight the group’s ability to advise clients on significant cross border deals in both emerging and developed markets.
“We are delighted to have won four awards for our work in a field that is so important for maintaining Africa’s economic growth. They are testament not only to Standard Bank’s heritage but also to the bank’s expertise in arranging deals across sectors and regions to service our clients’ needs,” says Mr Gush.
“As a leading institution with Africa at its core, we are well placed with our considerable local and international knowledge and sector expertise in project finance, natural resources and foreign exchange to assist companies with the investment of capital, technology and skills across borders and help facilitate their growth.”
He says Standard Bank’s strong balance sheet, depth of expertise and on-the ground presence in key African markets enable it to continue to lend to projects across key commodity sectors on the continent. The bank’s ability to do so is particularly significant now because it happens at a time when project finance in general is hard to raise as many banks tighten lending criteria because of the global debt crisis.
More about the winning deals
Africa Oil & Gas Deal of the Year: RompCo Pipeline (Mozambique)
Standard Bank Group provided R350-million of the subordinated debt of R600-million, which was provided to RompCo (Republic of Mozambique Pipeline Investment Company) to refinance arms-length loans provided by two of the RompCo shareholders. These loans had been used to finance an expansion of the gas pipeline through the addition of a compressor station.
The subordinated debt as a percentage of total debt in RompCo was high at 35%. The subordinated debt structure was utilized in order to introduce new debt into the existing RompCo transaction without a need to refinance the existing senior debt, which was provided at very attractive rates.
Africa Mining Deal of the Year: Boseto Copper mine (Botswana)
Standard Bank Group, together with three other top international banks, acted as the lead arrangers for the US$180-million project finance facility and US$25-million cost overrun and working capital facility for the Boseto copper project in northwest Botswana.
The same banks also provided hedging lines for both copper and silver production for the completion of the project, fully owned by Discovery Metals.
The Boseto copper project is expected to be completed and commissioned in the first half of 2012. Annual production is planned to be about 36,000 tonnes of copper and more than 1-million ounces of silver a year, for in excess of the initially evaluated mine life of 15 years.
This deal was significant in that the project is one of the only new copper mining developments outside the central copper belt in Africa, and it was a “club transaction” involving four lead arrangers (including, Standard Chartered Bank, Credit Suisse and Caterpillar Finance) and many top international consultancies.
Africa Power Deal of the Year: Kivuwatt Project (Eastern DRC)
Standard Bank Group was a co-arranger in the US$140-million deal for the development of an integrated Methane Gas to Power Project in Rwanda utilising Lake Kivu’s unique methane gas resources. The project will consist of a Gas Extraction Facility plus a 25mw power plant
Africa Renewables Deal of the Year: Addax BioEnergy (Sierra Leone)
Standard Bank Group was a co-arranger for 20-million euros of the 267-million-euro deal to finance the development of a 10,000ha sugarcane plantation, an ethanol distillery producing 82000m3 of ethanol per year and a 32MW cogeneration power plant in Sierra Leone.
Source: Standard Bank