Africa Loans

FirstRand Bank has begun syndication of a $250m loan, aimed at Asian lenders.

South African bank Investec signed a $600m syndicated loan on Wednesday, double the initial launch amount, making it the second successful bank financing to come out of the country this month after Standard Bank’s $1bn loan.

Tanzania has signed a $500m loan with Credit Suisse and a syndicate of other banks, according to an official close to the deal.

The summer lull is at an end and borrowers have sprung back into action. The BondMarker voters have delivered their verdict on which of last week's deals impressed.

In spite of the recent downgrade of South Africa and five of its largest banks, Standard Bank and Investec have received overwhelming demand from international banks for their loan financings.

Standard Bank has signed a $1bn syndicated loan with 43 banks on the ticket, marking another success for South Africa’s banking industry despite suffering rating downgrades earlier this year.

Investec has had an overwhelming response to its $300m loan, which was launched back in June, with 30 banks on the ticket taking commitments over $650m despite downgrades to the credit rating of both the borrower and its sovereign, South Africa.

Kenya has opted to extend a $750m loan which is due to mature in two months, due to the onset of violence after its election result making alternative funding difficult.

South African lenders, Investec and Standard Bank’s loans are due to sign this week, along with United Biscuits' acquisition loan, which is expected to close tomorrow.

South Africa has had a bumpy ride this summer with the sovereign downgrade and the introduction of a new controversial mining charter in June. Despite that, the loan market has proved its resilience.

South African gold mining company Harmony Gold signed a $350m loan, making it the first in its industry to take out a loan since a new mining charter was introduced in June.

Standard Bank has offered banks five different participation levels on its $750m syndicated loan, which it expects to grow to $1.25bn once commitments come in.