WestLB arranges loan for Bank of Namibia

GERMAN bank WestLB has jointly arranged a US$50 million to US$75 million debut syndicated loan for the Bank of Namibia (BoN) as it focused on growing its business in the southern African region, the bank said this week.

BoN Deputy Governor Paul Hartmann, when approached for comment by The Namibian yesterday, declined to give details but said the central bank was in the process of negotiating and would soon give full details. Reports said that other banks included CitiBank and Barclays.WestLB said Namibia’s central bank had invited 11 banks to pitch for the mandate.WestLB was also awarded the agency function.Charles Weller, MD and chief representative for WestLB in SA, said initial response from investors for the Namibian loan was positive.The transaction would close next month.The central bank loan follows a debut Namibian dollar-denominated bond WestLB co-arranged with Rand Merchant Bank for the Namibian government this year.Weller said that outside of its growing business in SA, WestLB was looking at growing business in countries such as Namibia, Botswana and Mozambique, and east and west Africa.”There are investors out there who are willing to invest in the Bank of Namibia or a Central Bank of Swaziland loan issue.It diversifies their portfolios, and gives them an interesting return,” he said.Volumes of business in SA had doubled or tripled this year from previous years due to growth in the economy as well as its increased commitment to SA.Although the economy was likely to cool off in the second half, he said opportunities for WestLB remained strong.”There is a lot more interest in London and Frankfurt from European banks for South African risk,” he said.Weller said the bank provided structured finance and classic lending to SA’s blue chips and parastatals.It was not in a position locally to compete with Standard Bank, Nedbank and Investec, but could fill a niche working with them.On the treasury side, WestLB had, apart from Namibia’s debut local currency bond, arranged a debut pula bond for Botswana last year.WestLB was working on another two bond issues in sub-Saharan Africa.- Business Day & Own ReporterReports said that other banks included CitiBank and Barclays.WestLB said Namibia’s central bank had invited 11 banks to pitch for the mandate.WestLB was also awarded the agency function.Charles Weller, MD and chief representative for WestLB in SA, said initial response from investors for the Namibian loan was positive.The transaction would close next month.The central bank loan follows a debut Namibian dollar-denominated bond WestLB co-arranged with Rand Merchant Bank for the Namibian government this year.Weller said that outside of its growing business in SA, WestLB was looking at growing business in countries such as Namibia, Botswana and Mozambique, and east and west Africa.”There are investors out there who are willing to invest in the Bank of Namibia or a Central Bank of Swaziland loan issue.It diversifies their portfolios, and gives them an interesting return,” he said.Volumes of business in SA had doubled or tripled this year from previous years due to growth in the economy as well as its increased commitment to SA.Although the economy was likely to cool off in the second half, he said opportunities for WestLB remained strong.”There is a lot more interest in London and Frankfurt from European banks for South African risk,” he said.Weller said the bank provided structured finance and classic lending to SA’s blue chips and parastatals.It was not in a position locally to compete with Standard Bank, Nedbank and Investec, but could fill a niche working with them.On the treasury side, WestLB had, apart from Namibia’s debut local currency bond, arranged a debut pula bond for Botswana last year.WestLB was working on another two bond issues in sub-Saharan Africa.- Business Day & Own Reporter