Africa Legal lead counsel on world first in the syndicated loan market
14 January 2010
The groundbreaking work of Absa Capital together with the Africa Legal team - including Steven Gamble, Julian Jackson, Ulrike Naumann and Kate Scott-Shaw - on the largest syndicated loan for a Ugandan corporate borrower to date - was recognised by Euromoney when the deal was named Project Finance Deal of the Year – Africa TMT Category.
Absa Capital, as sole Global-Coordinator, together with Barclays Bank of Uganda Limited, KCB Bank Uganda Limited, Stanbic Bank Uganda Limited and Standard Chartered Bank Uganda Limited as Mandated Lead Arrangers and Bookrunners signed a USD 100 million equivalent multi-tranche, local and foreign currency syndicated term loan and revolving facilities for MTN Uganda Limited. The Facilities were issued under an innovative structure similar to a Medium Term Note Program used for the issuance of bond securities. The structure allows MTN Uganda to enter into USD 150 million equivalent of senior secured facilities on an ongoing basis. The main financing documents are governed by English law to facilitate syndication and secondary market sell-downs.
The Facilities are split between a UGX 118,800,000,000 5-year local currency term loan tranche (USD 60 million equivalent), a USD 20 million 5-year term loan tranche and a UGX 39,600,000,000 5-year revolving credit facility (USD 20 million equivalent).
The facility was well subscribed by 11 domestic, regional and international financial institutions participating in the facility. The innovative structure of the deal addressed the need for strong local corporate credits in the Sub-Saharan Africa syndicated loan market to manage their funding needs and avoid frequent refinancing and associated costs as additional debt funding becomes available, allowing corporate issuers to maintain an optimal and more efficient capital structure.
Norton Rose South Africa (incorporated as Deneys Reitz Inc) joined Norton Rose Group on 1 June 2011.