FREE TRIAL NEWS All News Global On the Move Africa Americas Asia Europe Mena Fintech Sustainability Sign up for eNewsletters EVENTS PUBLICATIONS MULTIMEDIA DIRECTORY AWARDS SUBSCRIBE GTR VENTURES RECRUITMENT Share this Investec Bank secures US$600mn sustainability-linked term loan AFRICA / 23-11-21 / BY JACOB ATKINS 0 RELATED NEWS Abu Dhabi oil company secures loan with JBIC, commercial banks Gunvor secures first sustainability-linked revolving credit facility Singapore and Abu Dhabi pilot first MLETR-enabled trade transaction Gunvor signs US$1.3bn credit facility Baft appoints Scott Stevenson as senior trade VP Investec Bank has closed a sustainability-linked term loan, securing a US$600mn facility from 22 banks. The South African lender will use the financing for corporate purposes and for refinancing a US$500mn syndicated term loan signed in November last year. This year’s facility was significantly oversubscribed, having been launched at US$300mn. It has a tenor of two years and the option of a one-year extension. It is the first sustainability-linked loan closed by Investec Bank Limited, the Investec group’s South African-licensed lender. Its UK banking arm, Investec Bank Plc, also closed a US$600mn syndicated term loan in July this year. Investec’s global head of financial institutions Darryn Solomon tells GTR that to achieve cheaper financing under the sustainability-linked arrangement, the bank will not have specific targets such as those outlined in the Loan Market Associations’ (LMA) sustainability-linked loan principles, but instead has to improve its environmental, social and governance (ESG) risk rating as judged by Sustainalytics, an ESG corporate solutions provider. Investec’s current risk rating is ‘low’, the second-best category, and Solomon says the bank has already improved its ranking from 20.2 to 16.6 so far this year and “are stretching ourselves even further” by committing to lowering it further. If that target is not met, the margin on the loan increases by 2.5 basis points. The facility is aligned with Investec group’s sustainable finance framework, which is based on the LMA principles, Solomon adds. Abu Dhabi Commercial Bank, Bank of America, the London branch of China’s ICBC, SMBC, Standard Chartered and State Bank of India are coordinators, bookrunners and mandated lead arrangers (MLAs) on the facility. The other MLAs are: the Export-Import Bank of China (China Exim), BNP Paribas, Canara Bank, China Construction Bank, Citibank’s Johannesburg branch, Commerzbank’s London branch, Credit Europe Bank, HSBC’s Johannesburg branch, JP Morgan Securities, Lloyds Bank Corporate Markets, Mizuho Corporate Bank, MUFG and the National Bank of Ras Al Khaimah. Bank of China, Bank of Taiwan’s South Africa branch and China Exim are lead arrangers. “The success of the deal highlights the international syndicated loan market’s continued support for Investec as the global markets continue to recover from the Covid-19 pandemic,” Investec says in a statement. “Competitive pricing, the sustainability link and a return to a single 2+1 year tranche further demonstrates the appeal of the transaction to lenders.” Earlier this year Investec launched a new trade finance team in Johannesburg as it seeks to strengthen its presence in Africa, where research suggests businesses are hobbled by difficulty in gaining access to trade financing. Tags: Abu Dhabi Commercial Bank, Bank of America, ICBC, Investec, Investec Bank, SMBC, Standard Chartered, State Bank of India, sustainability linked loan principles (SLLP), sustainability-linked loans take me back Comments RECOMMENDED FOR YOU International lenders plough support into Arctic gas project, German involvement “still pending” SABB rolls out new sharia-compliant SCF product US retailers face growing pressure over maritime carbon emissions Freight rates crisis ‘could be exacerbated’ by fresh Covid outbreak UPCOMING EVENTS Dec 08 2021 GTR US 2021 New York New York, US Feb 14 2022 GTR MENA 2022 Dubai, United Arab Emirates Mar 10 2022 GTR Africa 2022 Cape Town, South Africa [see more] MAGAZINE COVER STORY From the editor View recent issue's contents DIRECTORY Get listed in GTR Directory now! Become a part of the most comprehensive contact listing of service providers in the global trade, commodity and export finance markets. Order your copy now SIGN UP TO OUR NEWSLETTER SUBSCRIBE ABOUT US CONTACT US WHAT IS TRADE FINANCE? ADVERTISE REGISTER FOR ENEWSLETTERS SUBSCRIPTION DESIGN SERVICES RECRUITMENT TERMS AND CONDITIONS PRIVACY POLICY © Exporta Publishing & Events Ltd 2021