Standard Bank Group, Africa’s largest bank by assets, has successfully provided a bridging facility loan which enabled Saturn Resources to acquire and de-list Shanta Gold from the London Stock Exchange.
Saturn Resources is a wholly owned subsidiary of the diversified investment group ETC Holdings domiciled in Mauritius while Shanta is an East Africa-focused gold producer operating two flagship assets in Tanzania.
Standard Bank was appointed as joint mandated lead arranger in the $150m bridging loan facility, which allowed Saturn to buy out existing Shanta Gold shareholders before de-listing the gold producer from the London Stock Exchange. The privatisation of Shanta Gold is set to allow its promoters, management, and employees to deliver on the business strategy and maximise the potential return on all stakeholders.
“We have demonstrated commitment to supporting our key clients in funding their growth ambitions,” said Elibariki Ndossi, Head of Investment Banking at Stanbic Bank Tanzania, a wholly owned subsidiary of Standard Bank.
“Our deep mining sector knowledge, footprint across Africa and major international financial centres, multifaceted teams and on the ground, presence facilitated the quick structuring and execution of the deal,” – shared Ndossi.
Standard Bank also leveraged its global markets business to provide foreign exchange hedging facility to manage the US dollar/British pound volatility.
Africa’s largest bank by assets has a footprint in 20 countries on the continent, to which it has committed to develop in an inclusive and sustainable way while managing risks.
The mining sector is a vital foreign exchange source for Tanzania, contributing about 9% of its GDP. Our deep mining sector knowledge, footprint across Africa and major international financial centres, multifaceted teams and on ground presence facilitated quick structuring and execution of the deal.
“The transaction has demonstrated Standard Bank’s ability to leverage across regional balance sheets (Isle of Man, Tanzania and Mauritius) and product capabilities across debt solutions and global markets to combine insights and ensure a bespoke and market relevant solution is delivered within a short timeline. The deal also indicated our balance sheet capability, as well our growing relationship with Shanta Gold and the ETC Group,” said Tumi Mmolawa, Investment Bank – Mining and Metals at Standard Bank
