In December 2009 the european development finance institutions OeEB, DEG and FMO provide a long-term financing to the amount of 100 million US-dollars of which OeEB contributes 20 million US-dollars and DEG and FMO contribute 40 million US-dollars each.
Long-term capital for infrastructure projects in Africa is currently not easily available. This is why DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH arranges a long-term financing to the amount of 100 million US-dollars for the financial institution The Standard Bank of South Africa Limited (SBSA). DEG itself provides a long-term loan of 40 million US-dollars and, as co-financers, Oesterreichische Entwicklungsbank and the Dutch development finance institution FMO contribute 20 million US-dollars and 40 million US-dollars respectively.
Financing of infrastructure projects
The major part of the loan will serve the financing of infrastructure projects in sub-Saharan Africa. The project thus contributes to boosting the urgently required expansion of road networks and the construction of hydropower stations in several countries. SBSA is one of the first African banks to sign the “Equator Principles” thus committing itself to implementing high environmental and social standards for their project financings. OeEB and DEG will support the bank in extending this philosophy step by step onto its overall corporate financing.
The Standard Bank of South Africa, Limited
SBSA has a leading role in South Africa in the field of Corporate Social Responsibility. It offers, for instance, financial services to disadvantaged groups of the population. With next to 29,000 employees and about 700 branch offices, SBSA is one of the most important institutes in the South African bank sector and active in the fields of both private and corporate customers. The company is a member of the globally active Standard Bank Group.