Uganda, Stanbic Bank Uganda (SBU) Ltd, member of the Standard Bank Group Limited, South Africa, Wednesday, signed an $85 million 18-month term loan facility with a group of lenders in Dubai, United Arab Emirates. The loan is aimed at funding its general business activities, including trade-related financing.

“This is the first syndicated loan from Uganda into the Middle East and we expect many more, because of strong investor interest from the Gulf for African credits,” said Dr Rassem Zok, Chief Executive of Standard Bank of South Africa, MENA according to Reuters.

Loan raised unexpected

The financing was oversubscribed from the initial launch amount of $ 75 million, with the SBU to be paying an interest rate of 250 basis points over the London interbank offered rate (Libor).

Emirates NBD Capital was the sole co-ordinator and bookrunner of the financing, while Al Ahli Bank of Kuwait KSCP, Kuwait and Standard Chartered Bank joined the transaction as mandated lead arrangers alongside Emirates NBD Bank PJSC, while Al Khalij Commercial Bank Q.S.C. and The Commercial Bank of Qatar QSC participated as lead arrangers.

Patrick Mweheire, CEO, Stanbic Bank Uganda Limited said “As a debut borrower in the international loan market, I am extremely impressed that such a sizeable amount has been raised for the bank in an 18 month tenor”.

Funding confirms increasing investor interest in Africa

According to Dr. Rassem Zok, CEO Standard Bank of South Africa, MENA the “very positive” response from investors, for the oversubscribed facility, from the Middle Eastern and international banks confirms increasing interest in Africa. It also speaks volume of the trust endorsed to Standard Bank Group’s strong financial position and highlights the Uganda growth story.