15 May 2012
Standard Bank Group involved in first 'future flow' deal in Nigeria
Standard Bank Plc, a member of Standard Bank Group Limited, was one of the mandated
lead arrangers and a bookrunners on the USD150 000 000, 5-year amortising syndicated
remittance backed term loan facility for Skye Bank Plc in Nigeria.
The deal was signed today and was supported by international and local investors.
African Export Import Bank and Citi joined Standard Bank as mandated lead arrangers
The loan is repaid and secured by remittance flows generated by Skye Bank through
Western Union and is the first 'future flow' transaction to be executed on a public
basis in Nigeria.
Future flow structures are a tried and tested funding method used by banks in emerging
markets to raise medium-term funding for over 20 years. It typically involves a
company issuing a debt instrument secured through receivables expected to be generated
in the future through normal operation.