Stanbic IBTC Bank will lead a conglomerate of six banks to raise N100 billion for the Dangote Industries\' commercial paper programme. It is a written agreement setting forth the terms and conditions under which funds are borrowed by a corporation and promising to repay the debt.
The bank is the mandated programme co-ordinator and agent bank for the landmark transaction.
Announcing the transaction, Kayode Solola, director, Global Markets (Treasury), Stanbic IBTC Bank said that the deal would reduce the administrative burden of the company\'s borrowing, lower cost of financing and build the company\'s confidence in the international money market.
According to him, \"the deal is designed to consolidate the Dangote Industries\' short term borrowings and is expected to reduce the administrative burden placed on the company as a result of multiple deals with several single lenders.
\"The deal is also going to boost the company\'s financial reputation in the international money market as well as getting the company well disposed to both local and international funding.
This transaction, Solola said, would further strengthen the relationship that existed between Stanbic IBTC Bank and the Dangote Group, which he traced to the pre-merger days of the old Stanbic and IBTC Chartered banks.
Solola commended the participating banks for their foresight in sealing the deal, which he said, would deepen the financial market, facilitate production and ultimately engender development in the economy.
\"The enthusiasm we have displayed is a testimony of the faith we all have in the Dangote Group to deliver value, not only to investors/lenders but also to all stakeholders,\" he said.
He further said that the deal would encourage other reputable business concerns to follow Dangote\'s success example and pledged the bank\'s preparedness to extend same financial services to such businesses.
Stanbic IBTC Bank is the largest African subsidiary of the Standard Bank group outside of South Africa. The Standard Bank Group is the largest South African banking group, with presence in 18 African countries and 22 countries outside Africa, offering a range of banking and financial services. The group employs more than 40,000 people worldwide. - Guardian