Standard Bank has reinforced its credentials in providing project finance to African power plant projects winning another award for its role in Morupule B Power Station, named as 'African Power Deal of the Year' by Project Finance International (PFI).
PFI is the leading source of global project finance intelligence. It is published every two weeks, PFI reports on the entire lifecycles of deals, from the initial rumours through to post-completion analysis. Morupule B was the first major transaction involving Standard Bank and Industrial and Commercial Bank of China(ICBC) since the Chinese bank took a 20 per cent stake in Standard Bank in February 2008. 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.
Commenting, Rob Walker, Director, Investment Banking Coverage Africa, Standard Bank, said: "Standard Bank is delighted to win another award for our role in Morupule B. T
he funding solution proposed to the client provided a one-stop funding solution in the current lending climate that is almost unheard of. Our joint proposal with ICBC demonstrated the competitive
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. 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.
"We are honoured by the continued recognition of the Bank for the funding of the Morupule B project.
We strongly believe in moving Africa forward. Financing such big projects together with our strategic partners ICBC, is one way we are living up-to this commitment," concluded Leina Gabaraane the Stanbic Bank Botswana Managing Director.