Stanbic, Eaton Towers sign US$30m debt financing

Standard Bank Group, parent company of Stanbic Bank Ghana has concluded a US$ 30 million debt financing deal with Eaton Towers Ghana Limited, the telecommunications infrastructure provider.  

Concluded late last year, the transaction provides for a 5-year senior secured term loan facility to fund the enhancement and upgrade of telecommunication towers under a Site Sharing and Maintenance Agreement contract with Vodafone Ghana. It is also to fund further capital expenditure in relation to the construction of up to 300 additional wireless towers in Ghana.

The debut debt financing deal was executed by Standard Bank of South Africa through Stanbic Bank Ghana.

“We are delighted to have completed our first bank debt financing with Standard Bank Group. Given our strong deal pipeline and the interest we are seeing from financial and development institutions, we are confident that this will be the first of many such financing deals. This debt facility is an endorsement of our business model and demonstrates our ability to leverage our assets in Africa in a highly efficient way,” Chief Financial Officer of Eaton Towers, Peter Lewis commented.

Standard Bank’s Global Head of Investment Banking, Paul Shang speaking on the Eaton Towers’ deal said,“This transaction for Eaton Towers demonstrates our dedication to and expertise in the African telecoms infrastructure sector. The cooperation between our local franchise and our international operations ensured that we could structure and deliver a debt facility that was tailor-made to Eaton Towers taking into account local practices and international lending standards. We are looking forward to supporting the Eaton Towers Group grow its business across Africa.”

Stanbic Bank Ghana has stepped up its financing advisory services for the telecommunication sector, providing key financing opportunities for a number of leading telecommunication companies in the country.

Managing Director of Stanbic Bank Ghana, Alhassan Andani said the telecommunication sector is fast becoming a key contributor to national growth by providing employment and the needed technology for businesses.

“Stanbic Bank is committed to supporting this critical sector by partnering the key players and builders to ensure that the nation recognises the key role of telecommunication in nation building,” he said.

Stanbic Bank’s Corporate and Investment Banking Unit (CIB) has a project financing track record of supporting a number of landmark deals in Ghana, such as funding of the Movenpick Ambassador Hotel in Accra and the Accra Shopping Mall project among others.

Director of the department, Kwamina Asomaning said the Eaton Towers deal is yet another manifestation of Stanbic Bank’s commitment to support the growth of corporate Ghana.

“Stanbic Bank CIB has consistently demonstrated its commitment to support the building of Ghana’s key infrastructure for development. This landmark deal underscores the structuring and execution capacity of Stanbic Bank and Standard Bank as a whole. Our vast network in Africa and across the globe enables us to leverage skills and synergies across borders to provide solutions and connect our clients to resources for moving their business forward,” he said.