Standard Bank and ICBC finance game-changing Mozambique LNG deal
Investment in Mozambique’s Coral FLNG project set to return country
“This game-changing transaction initiates a cycle of energy investment set to return Mozambique to growth while heralding the country’s arrival as a key global liquefied natural gas supplier,” says Paul Eardley-Taylor, Head, Oil & Gas, Southern Africa, Standard Bank,
Standard Bank, of which Stanbic Bank Zambia is a member, and its 20% shareholder, the Industrial and Commercial Bank of China (ICBC) are collectively the largest lenders to the project – reflecting the power of their partnership in driving African growth. ICBC plays a critical role in this transaction by acting as the Pathfinder Bank, K Sure agent, Chinese tranche agent and one of the facility account banks. Standard Bank acts as commercial facility agent, onshore account bank and security trustee in respect of the project.
“Our support of the funding of the Coral FLNG project grew out of our long-term commitment to Mozambique, consistently supporting the country’s potential as a future offshore natural gas production and export giant,” says Mr Eardley-Taylor.
In addition to broader advisory work currently underway in East Africa, Standard Bank and ICBC’s support for the Coral FLNG project builds on a long history of oil and gas development in Mozambique, including Sasol, ROMPCO, ENH, CMG, and CMH. Standard Bank also authored Mozambique’s landmark LNG macro-economic study informing the development of the 2014 Rovuma Basin Decree law.
This milestone transaction gives life to Standard Bank and ICBC’s broader vision and strategy to develop East Africa as global energy production and supply hub – especially to East Asia.
Global interest in Mozambique and the region’s potential as future energy suppliers is reflected by broad international participation in the deal. Export credit agencies, including Coface (BPI), K Exim, K Sure, Sace and Sinosure, are joined in this transaction by leading global energy giants ENI, Petrochina, GALP, ENH and Kogas.
ICBC and Standard Bank believe that this deal is an important signal on Mozambique’s longer term growth prospects, especially the implications of this investment for future southern and east African energy trade and security.
“This transaction demonstrates ICBC and Standard Bank’s vision of driving Africa’s growth by attracting foreign direct investment back into Mozambique’s promising energy production and export sector,” says Mr Eardley-Taylor. Significantly, “this game changing transaction puts East Africa on the map as a global energy supplier,” he adds.
About Standard Bank South Africa
Standard Bank South Africa is the largest operating entity of Standard Bank Group, Africa’s largest bank by assets. Standard Bank Group reported total assets of R1,95 trillion (about USD143 billion) at 31 December 2016, while its market capitalisation was R246 billion (USD18 billion).
In South Africa, Standard Bank provides the full spectrum of financial services. Its Corporate & Investment Banking (CIB) division serves a wide range of requirements for banking, finance, trading, investment, risk management and advisory services. CIB delivers this comprehensive range of products and services relating to: investment banking; global markets; and global transactional products and services.
Standard Bank’s CIB’s expertise is focused on industry sectors that are most relevant to emerging markets. It has strong offerings in mining and metals; oil, gas and renewables; power and infrastructure; agribusiness; telecommunications and media; and financial institutions.
Standard Bank’s Personal & Business Banking (PBB) offers banking and other financial services to individuals and small-to-medium enterprises. PBB’s product offering includes transactional services, lending products, mortgage lending, card products, vehicle and asset finance and wealth.
For further information go to http://www.standardbank.co.za/cib
About Stanbic Bank Zambia Limited
Stanbic Bank Zambia Limited is part of the Standard Bank Group, Africa’s largest bank by assets. The Standard Bank Group, with strong African roots and leader in emerging markets, has on-the-ground representation in 20 African countries
Stanbic Bank Zambia Limited is the largest bank in Zambia by balance sheet, offering a full range of banking and related financial services. The Bank is well capitalized and its capital position is above the regulatory minimum.
The Bank which has close to 60 years’ operating experience has a huge network of branches countrywide offering full spectrum of financial services from retail to corporate and investment banking
Our strategy is to be the leading financial services organisation in, for and across Zambia, delivering exceptional client experiences and superior value. We believe we can achieve this as Zambia is our home, we drive her growth. The Bank has been an integral part of the Zambian economy and is a leading player in the country’s financial services sector.
Zambia Management Team
|Head: Personal and Business Banking
|Head: Corporate and Investment Banking
|Chief Compliance Officer
|Head: Legal and Company Secretary
|Head: Human Capital