In line with its commitment to driving Africa’s sustainable growth, Standard Bank Group is proud to announce its new partnership with Prodigy Finance that will deliver funding to top African scholars who are looking to advance their careers through postgraduate studies at some of the world’s leading institutions.
Prodigy Finance is a global higher education finance company that successfully provides flexible student funding to international postgraduate students. The company has enabled over 40 000 students from 150 countries to advance their careers at over 1 500 leading institutions. This has been made possible through the provision of over USD 2 billion in student loans for postgraduate studies.
Their success has come about through an understanding of the income transformation that an array of courses at eligible universities can offer select students, and the ability for Standard Bank to assist on enhancing their business model is key.
Standard Bank will advance USD22m as a senior revolving credit facility to an asset backed funding structure that specifically targets students from Africa. This funding transaction demonstrates Standard Bank’s commitment to postgraduate education for the African market. It provides a good opportunity for the bank to establish a relationship with Prodigy Finance to be their go-to funder as they expand and grow on the African continent.
This African specific structure, known as the African Boost Programme, has been structured in conjunction with Allan & Gill Gray Philanthropies, who will be providing a subordinated first loss tranche in the form of grant funding.
This funding will provide much needed support to students who intend to pursue postgraduate studies abroad. All the proceeds of the facility will be used to underwrite new loans to African students – in addition to the grant provided by Allan & Gill Gray Philanthropies.
The revolving nature of the facility means that collections from loans previously sold into the SPV will be used to acquire additional loans from Prodigy Finance for as long as the revolving period remains available.
“A significant talent pool exists within Africa yet financial barriers often prevent this talent from pursuing tertiary degrees at prestigious international institutions. Standard Bank’s partnership with Prodigy Finance will enable African students to access educational opportunities that will enrich their lives,” said Chris Mparutsa Standard Bank Associate, DCM, IB. Capital Markets.
“At Prodigy, we have a record of accomplishment spanning over 17 years. Our success is mostly attributed to the demand from emerging market countries where the pool of talent is significant but the financial means and resources to secure tertiary degrees at top international universities are limited. This partnership with Standard Bank will go a long way in bridging that funding gap,” said Massimo Di Michele, Capital Markets Director.
Growing the talent is directly aligned with Standard Bank’s commitment to Africa.
Collaborating with Allan & Gill Gray Philanthropies provides the bank with an opportunity to deepen its ties with a foundation that has social development at its core. “Providing access to education is a vital and effective catalyst behind sustainable social upliftment in Africa. We are proud to partner with Prodigy as they continue with their success in empowering students to achieve their personal goals,” concludes Justine Crommelin, Standard Bank, SVP, Securitisation Debt Capital Market.
