Accra, Nov. 28, GNA – The Standard Bank Group has signed an agreement with the International Finance Corporation (IFC) to expand local currency lending to accelerate development projects across Africa.
Through the partnership, the two financial institutions would leverage their market expertise to address currency liquidity challenges through cross-currency swaps and derivatives in Africa.
A statement issued to the Ghana News Agency following a signing ceremony noted that for the 2024 fiscal year alone, the IFC achieved a record US$5.8 billion in local currency financing through 118 commitments in 34 currencies.
The two financial institutions have collaborated to increase climate and affordable housing finance in South Africa through multiple strategic transactions, including a US$250 million sustainable term loan, the statement noted.
The new partnership is to deepen IFC’s long-standing expertise in providing a variety of products to address currency mismatch risks, including loans and bonds, structured products, and risk-management solutions.
The statement said that the Standard Bank was selected as the partner for the initiative due to its lasting relationship with IFC and a strong track record on both local and foreign currency financing solutions.
Mr Kayode Solola, Head, Global Markets Africa Regions, Standard Bank Group, said the agreement with IFC would enhance their ability to participate more in the local stakeholders in their operational countries.
“Driven by positive market reforms and attractive returns, global investors have shifted their gaze to Africa,” Mr Solola said.
Mr Martin Habel, Head, Treasury Client Solutions EMEA, IFC said enhancing access to local currency financing in Africa was essential for business growth, job creation and the development of local capital markets.
“This agreement supports IFC’s strategy to expand funding and hedging solutions, facilitating access to local currency financing and reducing reliance on foreign currency-denominated debt in African countries,” he said.
GNA