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 and bookrunners.

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.

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