This archive report was first published on 1 July 2019.
Published on July 1, 2019, Absa Bank, a top financial institution in South Africa, has secured a $500 million syndicated loan, marking the first such loan it has taken part in over a decade.
The loan, which was launched on May 29, 2019, to select financial institutions, was initially planned to be $300 million but was increased to $500 million due to a strong response from the market. The loan product achieved an impressive 192% oversubscription, indicating Absa's strong credit profile and its attractiveness to international investors.
The syndicated loan will be used for corporate purposes, including trading financing, and will have a repayment period of two years with a possible extension of one year if Absa Bank wishes to extend the maturity date.
According to Jason Quinn, Financial Director at Absa Group, the loan will be used to fund the growth of US dollar lending both in South Africa and the lender's regional operations, in support of the group's strategy.
Absa Bank is a wholly owned subsidiary of the larger Absa Group and offers a range of products and services, including retail banking, corporate banking, investment banking, and wealth management.
Related: Citi Issues Buy Rating for Absa, as split from Barclays PLC 69% Done
