Benoit Samouilhan, Global Transaction Banker at Standard Bank Corporate and Investment Banking (CIB).
Image: Supplied
Standard Bank, Africa’s largest bank by assets, has announced a partnership with Helios Towers (HT) to provide a groundbreaking $29 million (about R474,9 million) Social Documentary Credit Facility in a move that underscores the intersection of finance and social impact.
The transaction marks Standard Bank's inaugural Documentary Credit Facility structured in a Sustainable Finance format, aimed at propelling telecommunications infrastructure growth across the African continent, a statement said Wednesday.
This facility is set to facilitate the procurement and importation of essential telecommunications infrastructure and services, granting HT improved payment certainty and supporting its working capital requirements as well as its ambitious infrastructure expansion programme.
The financing, structured in accordance with the Loan Market Association’s Social Loan Principles, is designed to enhance digital connectivity and develop telecommunications infrastructure in underserved markets.
As HT looks to broaden its footprint, the funding offers the tools to enhance mobile network coverage and connectivity across Africa, directly addressing the pressing issue of the digital divide.
HT operates one of the continent's foremost independent telecommunications tower platforms, enabling mobile network operators to effectively extend their services over multiple markets.
The benefits of this facility stretch beyond immediate financial assistance; it is poised to support the expansion of tower infrastructure, increase network densification, and improve connectivity in the most remote and underserved areas of Africa, effectively driving economic growth and fostering socio-economic development.
Benoit Samouilhan, Global Transaction Banker at Standard Bank Corporate and Investment Banking (CIB), said in a statement: “This transaction demonstrates the power of innovation in trade finance. By combining a first-to-market Social Documentary Credit Facility with a cross-border funding solution, Standard Bank has supported Helios Towers’ growth ambitions while helping extend digital connectivity to underserved communities across Africa,” he said.
The potential social impacts of this facility are substantial, projected to significantly improve communication and business opportunities within HT's operating markets. Through increasing and enhancing network coverage, the initiative strives to drive digital inclusion across communities that have historically faced connectivity challenges.
Noloyiso Mpanza, Executive Lead of Sustainable Finance at Standard Bank CIB,
Image: Supplied
“Reliable digital infrastructure is fundamental to Africa's future growth and development,” said Alex Carter, group finance director at HT.
“This facility provides us with the flexibility and certainty needed to support our infrastructure investments while advancing our mission of expanding connectivity across the continent.”
Reflecting on the collaborative nature of this transaction, Noloyiso Mpanza, Executive Lead of Sustainable Finance at Standard Bank CIB, said the bank was committed to facilitating tailored trade finance solutions that promote telecommunications infrastructure development across Africa.
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