04 November 2022
On behalf of Absa Bank Limited (the “Borrower” or “Absa” or the “Bank”), Bank of America Europe Designated Activity Company, Industrial and Commercial Bank of China Limited, London Branch, SMBC Bank International plc and Standard Chartered Bank (together the “Book runners” and “Coordinators”) are pleased to announce the launch of a $300m Term Loan facility (the "Facility”).
The Facility has an initial tenor of two years, subject to an extension option available at the Borrower’s discretion to extend the maturity by a further one-year at the end of the initial two-year tenor. Theproceeds of the Facility will be used for general corporate purposes including, but not limited to trade related finance. The Borrower may elect to upsize the Facility in the event of an oversubscription in syndication.
Absa Group Limited was founded in 1991 in Johannesburg South Africa. In 2005, Barclays acquired a majority (56.4%) stake in the group, eventually renaming the group to Barclays Africa in 2013. Barclays Bank divested its majority shareholding in 2018 and Barclays Africa Group Limited was officially renamed Absa Group Limited (“Absa Group”) where it started trading under its new name on the Johannesburg Stock Exchange. The Absa Group is one of Africa's largest financial services providers with a presence in 12 African countries, as well as the UK. Absa Bank Limited is a 100% owned subsidiary of the Absa Group.
Absa Bank Limited (rated Ba2 by Moody’s) is incorporated and domiciled in South Africa and provides retail, business, corporate, investment banking, and wealth management products and services. The Borrower is one of South Africa’s largest financial services organisations, serving retail, business and corporate customers and clients in South Africa. The Borrower and its subsidiaries operate primarily in South Africa and employ 35 267 people. As at 31st December 2021, the Bank’s full year results reflected a total income of ZAR 85.8bn with headline earnings of ZAR 18.6bn. Total assets were ZAR 1,637bn of which ZAR 1,017bn were loans and advances to customers.