The Mauritius Commercial Bank (MCB) announced on 9 September that it had secured a syndicated loan of USD 1 billion from a consortium of six international banks, which represents the largest financing to a corporate borrower in Africa this year to date. The CEO of MCB, Alain Law Min, commented that this line of credit would sustain the company’s strategic endeavours to pursue the expansion of its international business in the region and across Africa.

On 9 September 2021, on behalf of The Mauritius Commercial Bank Ltd (the “Borrower”, or “MCB”), Abu Dhabi Commercial Bank PJSC (“ADCB”), Citi, Intesa Sanpaolo S.p.A. (“Intesa”), Mizuho Bank, Ltd. (“Mizuho”), Standard Chartered Bank (“SCB”) and SMBC Bank International plc (“SMBC BI”), each as a “Coordinator” and “Bookrunner” and collectively, the “Coordinators and Bookrunners”, were pleased to announce the signing and successful closing of syndication for MCB’s USD 1,000,000,000 Dual Tranche Syndicated Term Loan Facility (the “Facility”).

Proceeds from the Facility will be used to refinance amounts outstanding under the Borrower’s existing USD800mn term loan signed in March 2019 and for general corporate purposes, including trade finance.

The Facility launched at an amount of USD 600,000,000 (subject to increase). MCB subsequently elected to upsize the transaction to USD 1,000,000,000, in light of the significant commitments received.

The Facility comprises two tranches – Tranche A with a tenor of 2 years (bullet repayment) and Tranche B with a tenor of 3 years (bullet repayment).

The deal was very well received in the loan market, with commitments in excess of USD 1.6bn and the book being covered 2.78x. This significant over-subscription led to scale-back of total commitments, even after upsizing the facility to USD 1,000,000,000. The Facility was circled by thirty-one banks, comprised of existing core lenders and a number of new lenders from across the globe, reflecting MCB’s strong appeal to international investors, as well as the Borrower’s robust credit story.

Alain Law Min, Chief Executive Officer (CEO), MCB Ltd: “The success of the deal demonstrates the support of the international loan markets to MCB, despite challenging times both on the local and international fronts. This has been possible thanks to the depth and breadth of the Financial Institutions network developed by MCB and bears testimony to the strength of our investment grade credit- worthiness. This line of credit will sustain our strategic endeavours to pursue the expansion of our international business in the region and across Africa”.

The Facility is the largest financing to a corporate borrower in Africa year to date.