Standard Bank Group, Africa’s largest bank by assets, successfully provided a bridging facility loan to enable Saturn Resources to acquire and de-list Shanta Gold from the London Stock Exchange.
Saturn Resources is a wholly owned subsidiary of ETC Holdings, a diversified investment group based in Mauritius, while Shanta is a gold producer focused on East Africa with operations in Tanzania.
Standard Bank acted as joint mandated lead arranger in the $150m bridging loan facility, allowing Saturn to purchase existing Shanta Gold shareholders and de-list the company from the London Stock Exchange. This privatization is expected to help the promoters, management, and employees of Shanta Gold execute their business strategy and maximize returns for all stakeholders.
“We are committed to supporting our key clients in achieving their growth goals,” said Elibariki Ndossi, Head of Investment Banking at Stanbic Bank Tanzania, a subsidiary of Standard Bank.
“Our expertise in the mining sector, presence across Africa and major international financial centers, as well as our diverse teams on the ground, enabled us to quickly structure and execute this deal,” Ndossi added.
Standard Bank also provided a foreign exchange hedging facility through its global markets business to manage US dollar/British pound volatility.
With a presence in 20 African countries, Standard Bank is dedicated to sustainable and inclusive development across the continent while effectively managing risks.
The mining sector in Tanzania is a significant source of foreign exchange, contributing approximately 9% of the country’s GDP. Our expertise in the mining sector, presence across Africa and major international financial centers, as well as our teams on the ground, facilitated the rapid structuring and execution of this deal.
“This transaction showcases Standard Bank’s ability to leverage regional balance sheets (Isle of Man, Tanzania, and Mauritius) and product capabilities in debt solutions and global markets to deliver a customized and market-focused solution within a short timeframe. It also demonstrates our balance sheet strength and growing relationship with Shanta Gold and the ETC Group,” said Tumi Mmolawa, Investment Bank – Mining and Metals at Standard Bank.