By Ernest K. Chanani
Two members of the Standard Bank Group, Stanbic Bank Ghana and Stanbic Bank South Africa have successfully secured $300-Million (GH¢ 410 million) in medium-term funding facilities on behalf of its client, MTN Ghana.
The initiative of the two banks was geared towards supporting Telecom Giant MTN Ghana in its bid to create job opportunities in its operations in the Ghanaian economy.
In addition to the GH¢ 410 million, a large sum of US$60Million which received a positive take-up was raised by the syndication team comprising of 16 local banks and four international banks.
The amount which was raised in the local Ghanaian market is the largest local currency deal in Ghana’s history outside the annual COCOBOD syndications transactions usually in foreign currency.
However, Mr. Alhassan Andani, Stanbic Bank Ghana Managing Director has disclosed in Accra that MTN has been a business leader over the years and Stanbic Bank was delighted to be playing a lead role in mobilizing the funds.
He noted that Standard Bank of South Africa is the Facility and Security Agent, adding that Stanbic Bank Ghana had 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.
He explained that this landmark transaction is a testament a collective drive to support the Ghanaian economy which will create jobs and give hope to the people of Ghana.
The Stanbic Bank Ghana MD noted that MTN Ghana appointed Stanbic Bank Ghana Limited and Standard Bank of South Africa as the Global Coordinator for the deal and they ran the entire syndication process to secure the funding.
Mr. Andani stressed that there was a positive take-up by financial institutions and as such the Ghanaian Cedi facilities and USD facility were oversubscribed by 35% and 92% respectively, an indication of the financial strength and quality that local and foreign banks see in MTN Ghana and its operations.
MTN Ghana he indicated 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.
“Of course the Standard Bank through its African and international network was able to demonstrate its ability to secure funding from multiple sources in both local and foreign currency,” he emphasized.
The funds raised in the bond issue according to him, will be used by MTN to expand and improve its network in Ghana going forward.
Chief Executive Officer (CEO) of MTN Ghana, Mr. Michael Ikpoki, reiterated it is a demonstration of how MTN saw its 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,” He stated.
Mr. Kwamina Asomaning, Director of Stanbic Bank’s Corporate and Investment Banking unit said “as a leading emerging markets bank, specifically Ghana’s Best Investment Bank. Stanbic bank is serious about playing a transformative role in Ghana’s corporate sector in partnership with government, organizations such as MTN and other likeminded institutions across all sectors.”
He further stated that as a member of Africa’s largest Bank, Stanbic Bank Ghana was in the best position to harness resources across the group to deliver results that impact on the lives of Ghanaians.”
Adding, he stressed that the requirement by MTN Ghana was for a global bank with a strong African footprint and that Stanbic bank’s appointment was consequently an endorsement of Standard Bank’s strategy to have Africa at its core as the bank extend and deepen its business across the continent.
This is the first time a multinational company 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.