Standard Bank raised $300 million for MTN Ghana
Standard Bank (SBK) has successfully raised $300-million in medium-term funding facilities on behalf of its client, Scancom Limited, known commercially as MTN Ghana, the leading telecoms service provider in Ghana.
The Ghana-based transaction was heavily over-subscribed both locally in Ghana, as well as internationally.
Standard Bank raised the equivalent of $240-million in the local Ghanaian currency (410-million Ghana Cedi), making this the largest local currency deal in Ghana’s history.
The remaining $60-million received a very positive take-up by foreign institutions, including several South African banks.
A total of 20 global and local financial institutions bid and took part in the transaction, which represents the largest bank syndication in Ghana outside the annual Ghana Cocoa Board transaction.
MTN Ghana is the local market leader with approximately 50% market share. Funds raised in the syndication will be used by MTN to further expand and improve its network in Ghana.
MTN Ghana appointed Stanbic Bank Ghana Limited and Standard Bank of South Africa as the global coordinator for the deal, as well as its security and facility agent. Standard Bank also participated in the transaction.
Standard Bank’s proven international and African footprint and capacity to facilitate and participate in the transaction proved to be very advantageous in successfully closing the first ever local currency syndication of this size. Standard Bank through its African and international network was able to demonstrate its ability to raise funding from multiple sources in both local and foreign currency.
Kwamina Asomaning, Stanbic Bank Ghana Director of Corporate and Investment Banking, says: “The requirement by MTN Ghana was for a bank with a strong capability and African footprint. We believe our appointment was consequently an endorsement of Standard Bank’s strategy to have Africa at our core as we extend and deepen our business across the continent.
“The transaction required strong coordination between our in-country and South Africa teams. The result of this team work was an enthusiastic take-up by 20 banks and a significant over-subscription.
“This is a landmark deal that brings with it confirmation of Standard Bank’s credentials not only in Ghana but across Africa, including our capacity to compete successfully against global competition in the dollar market.”
Commenting on the deal, Chief Executive Officer of MTN Ghana, Michael Ikpoki, said: “This is a demonstration of how we see our 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 us take our business to the next level where the consumer will be the ultimate winner.”
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