Monday, June 27, 2011

Stanbic, Gold Fields sign US$60m loan deal

Stanbic Bank Ghana has closed a US$60million loan deal with Gold Fields Ghana Limited for fleet replacement at the Tarkwa and Abosso mines of the mining company.

The loan facility, which has a lifespan of 3 years, is the single largest transaction closed locally by a mining company in the last couple of years.

Stanbic’s Corporate and Investment banking unit partnered its parent company, Standard Bank, to structure the deal for the mining firm.

Head of Investment Banking at Stanbic Bank, Sam Botwe, said the deal with Gold Fields Ghana is yet another manifestation of the Standard Bank Group’s unique project-financing capabilities.

“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 to move their business forward,” he said.

“The activities of the extractive companies in the country, including Gold Fields Ghana, have put the country on the international commodities market, bolstering the nation’s emerging market growth focus and status,” said Stanbic’s Managing Director Mr. Alhassan Andani.

“There remains enormous potential to develop further and sustain this growth path, and that is where we come in as a financial institution. Stanbic Bank is committed to supporting those crucial sectors of the economy by partnering the right actors to make things happen.”

For his part, Mr. Peter Turner, Executive Vice President of Gold Fields West African Operations, emphasised the importance of the deal to the mining firm’s operations.

“With this facility in place, Gold Fields operations in West Africa have fully matured and will no longer depend solely on shareholder loans for its working capital and future investments.

“Since 2010, the Abosso mine has been working towards “owner” mining. We are confident that the facility will help the Abosso mines realise this objective; we are excited about this partnership,” he said.

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