In a landmark deal, Stanbic Bank Botswana has jointly provided African private debt firm, Norsad Capital Limited, with a ZAR680 million 6-year sustainability-linked funding to assist with its growth ambitions and impact investment goals. The deal is testament to the Bank’s Social Economic and Environment (SEE) strategic agenda realised, with a determined focus on sustainable Environmental, social and governance (ESG) support.
Stanbic Bank Botswana served as co-arranger, lender and joint sustainability coordinator in the transaction, working closely with Norsad to ensure sustainable best practice to pave the way for future efforts of this nature. This is a first of its kind deal in the Botswana financial institutions sector and a second in Investment Banking Botswana and a historic feat to play our part to achieving the Sustainable Development Goals (SDGs).
“Stanbic Bank Botswana is committed to promoting the sustainable economic development of our continent and is proud to have the opportunity to support clients such as Norsad Capital, who have similar goals and shared sustainability lens for impact. Our market leading Sustainable Finance expertise as well as regional debt structuring experience, allowed the transaction to be uniquely tailored to Norsad’s financing needs, whilst aligning to some of their strategic sustainability goals,” said Morufhi Masikara, Head, Corporate Investment Banking of Stanbic Bank Botswana.
Norsad Capital Limited has built its reputation as an impact investor offering debt financing solutions to mid-market growth companies across Southern Africa that can generate positive impact and deliver strong financial returns. Founded in 1990, the firm services clients in the financial services, healthcare, industrial, manufacturing, clean-tech, consumer products and services sectors.
“This is a momentous achievement and we are grateful to our funding partners for their role. As we work to deliver greater and more meaningful impact, the sustainability Key Performance Indicators (KPIs) that will be measured throughout the life of this facility include the number of customers reached by financial institutions, measuring the additional annual number of customers reached by financial institutions; and women and youth jobs, as we measure additional annual numbers of women and youth jobs supported by Norsad,” said Norsad Interim CEO, Jonathan Davies.
For over 3 decades, Norsad has invested over USD500 million in more than 150 companies that have demonstratable positive impact. The firm aims to create a better Africa and positively impact the lives of 100 million Africans by 2030. Through its tailor-made debt finance solutions, Norsad supports the growth of profitable African companies by enabling them to have substantial and ongoing social impact through the services and employment they provide. Norsad provides direct debt financing of between USD5 million and USD15 million to mid-market companies for growth and development, with a firm ESG philosophy at the heart of its impact investing. This includes 4 impact areas of sustainable livelihoods; financial inclusion; gender equality; climate and clean energy.
“Our ability to support this transaction further demonstrates our continued support of Norsad Capital Limited and our commitment to the client as a strategic partner whilst putting us in a strong position for future opportunities. Not only does this see us deliver further on our purpose, Botswana is our home; we drive her growth; but it helps us expand that impact cross the region through our valued client,” concluded Masikara.