Standard’s R1bn loan facility closure a ‘vote of confidence’ in banks
Standard Bank’s successful closure of a $1bn syndicated term loan facility, in which 43 global banks participated, demonstrates confidence in SA’s banks, analysts say. Despite the political backdrop, sluggish economic conditions and ratings volatility, it was a strong vote of confidence in Standard Bank, said Conway Williams, head of listed credit at Futuregrowth Asset Management. "Further, it talks to the maturity and stability of SA’s financial markets." His comments followed a Moody’s report that said that low economic growth would weaken domestic banks’ credit quality and profitability, but capital would remain resilient. SA’s banks were extremely well capitalised, notwithstanding the country’s sovereign credit rating, making them attractive relative to their international counterparts, said Ryan van Breda and Farzana Bayat, portfolio managers at Prescient Investment Management. Standard Bank was well respected by offshore investors, with its strategic partner, the Industrial an...
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