Johannesburg, South Africa, November 26, 2024 —IFC, a member of the World Bank Group, has partnered with Standard Bank and Rand Merchant Bank (RMB) to help expand local currency financing for private businesses across Africa.
IFC will collaborate with Standard Bank and RMB on cross-currency swaps as a hedge to manage currency exposure related to its local currency lending. This hedging allows IFC to lend in local currency at stable and competitive rates to private businesses in countries such as Botswana, Ghana, Kenya, Nigeria, Tanzania, Uganda, and Zambia.
“We are excited to partner with IFC on this initiative, which will play a crucial role in supporting the growth of private businesses across Africa,” said Reza Cassim, co-Head of Global Markets at RMB. “This collaboration reinforces our commitment to enhancing local currency financing and managing currency risk, enabling businesses to thrive in their local markets.”
“There is growing interest in sub-Saharan countries with investors recognizing the region’s potential,” said Kayode Solola, Head, Global Markets Africa Regions at Standard Bank Group. “The agreement with IFC further entrenches Standard Bank’s ability to make a real difference in the countries in which we operate, allowing deeper participation of local stakeholders in their own economy.”
“Local currency financing is a key priority for IFC to boost economic growth and create jobs in Africa,” said Martin Habel, Head, Treasury Client Solutions EMEA at IFC. “By partnering with Standard Bank and RMB, we are increasing access to local currency financing to support local businesses in Africa, to drive economic growth, and to invest in critical development sectors.”
This partnership will facilitate over-the-counter cross-currency swaps between the entities. Standard Bank and RMB will offer these swaps to IFC by tapping into their extensive network of branches across Africa.
The agreements strengthen IFC’s longstanding relationships with both banks, supporting efforts to address currency mismatch risks and expand access to local currency lending. In fiscal year 2024, IFC achieved a record $5.8 billion in local currency financing through 118 commitments in 34 currencies.
About the Standard Bank Group
Standard Bank Group is the largest African bank by assets, operating in 20 African countries, 4 global financial centres and 2 offshore hubs. Headquartered in Johannesburg, South Africa, we are listed on the Johannesburg Stock Exchange, with share code SBK, and the Namibian Stock Exchange, share code SNB.
Standard Bank has a 162-year history in South Africa and started building a franchise outside southern Africa in the early 1990s. Our strategic position, which enables us to connect Africa to other select emerging markets as well as pools of capital in developed markets, and our balanced portfolio of businesses, provide significant opportunities for growth.
As at 30 June 2024, Standard Bank Group had 19.5 million clients, employed nearly 51 000 people (including Liberty) and had almost 1 200 points of representation and 5 500 ATMs on the African continent. The group’s largest shareholder is the Industrial and Commercial Bank of China (ICBC), the world’s largest bank, with a 19.4% shareholding. In addition, Standard Bank Group and ICBC share a strategic partnership that facilitates trade and deal flow between Africa, China and select emerging markets. For further information, go to http://www.standardbank.com
About Rand Merchant Bank
Rand Merchant Bank (RMB) is a leading African corporate and investment bank (CIB) and part of the largest financial services group in Africa – FirstRand Bank Limited (which is wholly owned by FirstRand Limited). We offer our clients innovative, value-added advisory, funding, trading, corporate banking and principal investing solutions.
As a leading African business, RMB’s expansion on the continent is a key growth strategy. RMB has a deal footprint in over 35 countries in Africa, as well as a presence in the UK, USA, India and China. For more information please visit: www.rmb.co.za
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
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