Standard Bank’s work in providing project finance to for the Morupule B power station in Botswana was last week recognised internationally as the “African Power Deal of the Year” by Project Finance International magazine.
This project was the first major transaction involving Standard Bank and the Industrial Commercial Bank of China (ICBC) since the Chinese bank took a 20% stake in Standard Bank in February 2008.
Standard Bank and ICBC were joint lead arrangers on a US$1.6bn debt package for Botswana Power Corporation to expand its plant near Palapye in eastern Botswana.
The project, which includes upgrades to water supply facilities and the building of additional transmission lines and substations, will increase the capacity of the plant from 132MW to 732MW, providing much needed additional capability to the local community.
ICBC is providing a US$140m bridge loan guaranteed by Standard Bank and the $825m 20-year term-loan facility.
The funding solution proposed to Botswana Power Corporation provided a one-stop funding solution. What made this deal even more exceptional is that it took place during the current difficult economic climate.
Standard Bank’s joint proposal with ICBC shows the competitive advantages of combining ICBC’s large balance sheet and client network in China with Standard Bank’s project finance expertise and on the ground presence.
This transaction demonstrates the benefits of the Standard Bank and ICBC partnership to African companies looking for financing and to the local communities whose quality of life is enhanced through increased expenditure on essential power and infrastructure projects.
For more info on our project finance visit
http://corporateandinvestment.standardbank.co.za/sa/products/finance/project_finance.jsp
