Project finance
Although gearing has slowed globally because of the financial crisis, the demand for infrastructure remains high and cash flow prospects remain strong across a number of sectors in countries in Africa and emerging markets.
Also, strong government support is evident for projects across power and infrastructure, as Africa increases capacity in the natural resources sector. Growth remains contingent on upgrades and development to facilities across power, roads, rail, ports and social infrastructure. The challenge for financial institutions is to provide competitive and sustainable finance solutions.
Standard Bank is the largest bank in Africa by assets and earnings. With broad transactional and commercial experience in Africa and selected emerging markets, we offer a full spectrum of project finance products and leading capabilities in Africa.
With ongoing pressure in financial markets, we have a proven ability to secure appropriate funds for our clients on the best possible terms. Our long-standing experience in emerging markets and deep understanding of our clients means that we can match them to suitable investors.
We focus on South Africa and developments in Africa, particularly where they relate to countries where we have a presence. We also link investors from selected emerging markets to opportunities in Africa.
Our team draws on the expertise of product teams and sector specialists across the full capability of Standard Bank where necessary, to ensure our solutions are fit-for-purpose and appropriate to client need.
Why talk to us?
- We have the widest and most established banking network in Africa, and use in-country skills and local knowledge to develop project working finance solutions for a broad client base.
- Our experts are knowledgeable in sectors most relevant to Africa and emerging markets, and have an in-depth understanding of local legal, fiscal and regulatory frameworks across Africa.
- We identify and secure funding from various sources, to provide clients with appropriate funding solutions.
- Standard Bank’s partnership with the Industrial and Commercial Bank of China (ICBC) gives us an unrivalled ability to facilitate trade and investment between Africa and Asia. It provides further support through ICBC’s international lending and arranging capabilities, as well as access to Chinese developers and lenders.
- We have established relationships with development finance institutions, and ensure that all developmental aspects of our projects are met.
- Standard Bank has long understood the value of pooled funds to address gaps in local capital markets. We are involved in the following funds:
- The $305 million Emerging Africa Infrastructure Fund
- The $175 million African Infrastructure Investment Fund
- The R800 million Southern African Infrastructure Fund, which has fully invested its capital, of which almost a third was provided by Standard Bank.
Services
Standard Bank acts in any one or a combination of the capacities of financial advisor, arranger and underwriter of senior, mezzanine debt and equity for all large capital projects. Our project finance services include:
- Financial modelling and sensitivity analysis
- Risk evaluation and risk mitigation strategies
- Advice on the structure of project contracts
- Taking an active role in negotiations
- Financial structuring
- Arranging of multi-source funding, including development finance and export credit. Where required, we provide specialist and customised political risk structuring, and leverage relationships with key risk insurers, including Export Credit Agencies
- Underwriting and lending
Our project finance team has specialist skills and industry-specific knowledge. We work closely with other areas of the bank to create customised solutions that draw on sector and product expertise from across the bank. We have particular experience in:
- Power and infrastructure – in Africa, there is huge unmet demand in the sector, presenting significant opportunities and the need for an expert partner who can advice on and secure appropriate funding
- Mining and metals – with global demand increasing again, emerging markets in Africa stand to benefit from this sector, which also provides a source of funding for other sectors with higher multiplier effects
- Oil and gas – the sector is major contributor to GDP in several countries in Africa. A number of new discoveries are contributing to strong sector growth
- Telecommunications and media – a comparatively new sector in Africa, it is well supported by international investors. The sector is currently dominated by telephony but data services are slowly gaining prominence
Guided by the Equator Principles
Standard Bank Group is an Equator Principle Financial Institution (EPFI), having adopted and integrated all 10 of the Equator Principles which relate to Project Finance. Projects financed by EPFIs are required to be socially responsible and reflect sound environmental management practices. The Equator Principles are based on the International Finance Corporation (IFC) performance standards on social and environmental sustainability, and on the World Bank Group’s Environmental, Health and Safety general guidelines that are applied globally and across all industry sectors by banks providing project finance. The principles apply to all new project finance deals above US$10m. Standard Bank is a member of the Equator Principles Steering Committee.
Visit the Equator Principles website for more information.
Source:http://corporateandinvestment.standardbank.co.za/cib/products/finance/Project-finance
