Key Takeaways
- • Standard Bank Corporate and Investment Banking provided integrated financing for Sihamba Sonke Mobility, the new concessionaire for the Gautrain Rapid Rail Link System, with financial close enabling R9 billion ($539.9 million) in planned investment.
- • Standard Bank acted as Sole Mandated Lead Arranger and underwrote the entire debt package, also serving as hedge provider, account bank, performance bond issuer, facility agent and security agent.
- • The 15-year Public Private Partnership concession with the Gauteng Provincial Government covers operating, maintaining, upgrading and modernising the existing Gautrain system.
- • The transaction marks Standard Bank's return to the project nearly 20 years after it arranged and closed the original Gautrain financing in January 2007.
- • Planned works include refurbishing 24 existing trainsets, procuring eight new trainsets, signalling and communications upgrades, and fare collection digitalisation.
Summary
Standard Bank Corporate and Investment Banking (CIB) has provided an integrated financing solution for Sihamba Sonke Mobility, the new concessionaire appointed to operate, maintain, upgrade and modernise the Gautrain Rapid Rail Link System. The concession runs for 15 years under a Public Private Partnership with the Gauteng Provincial Government. According to Standard Bank, the financial close paves the way for R9 billion ($539.9 million) in investment into the system.
The Gautrain connects key economic nodes in Gauteng Province, including Johannesburg, Pretoria, Sandton and OR Tambo International Airport, and has operated since 2010. The transaction marks the next phase of the system's development, almost 20 years after Standard Bank arranged and closed the financing for the original project in January 2007.
Standard Bank acted as Sole Mandated Lead Arranger, Underwriter, Hedge Provider, Account Bank, Performance Bond Issuer, Facility Agent and Security Agent. The bank underwrote the entire debt package and drew on its Investment Banking, Transaction Banking and Global Markets capabilities to deliver an integrated financing and risk management solution.
Planned investment includes refurbishment of 24 existing trainsets, procurement of eight new trainsets, signalling and communications upgrades, digitalisation of the fare collection platform, station upgrades, renewable energy initiatives and replacement of the feeder bus fleet. The consortium includes AIIM-Motseng, Alstom, RATP Dev, GIBB-CREDE and AWCA Investment Holdings.
Standard Bank described the transaction as reinforcing its commitment to South Africa's infrastructure development agenda, and said it continues to structure financing solutions across Africa that support connectivity, economic growth and sustainable infrastructure.
The Gautrain connects key economic nodes in Gauteng Province, including Johannesburg, Pretoria, Sandton and OR Tambo International Airport, and has operated since 2010. The transaction marks the next phase of the system's development, almost 20 years after Standard Bank arranged and closed the financing for the original project in January 2007.
Standard Bank acted as Sole Mandated Lead Arranger, Underwriter, Hedge Provider, Account Bank, Performance Bond Issuer, Facility Agent and Security Agent. The bank underwrote the entire debt package and drew on its Investment Banking, Transaction Banking and Global Markets capabilities to deliver an integrated financing and risk management solution.
Planned investment includes refurbishment of 24 existing trainsets, procurement of eight new trainsets, signalling and communications upgrades, digitalisation of the fare collection platform, station upgrades, renewable energy initiatives and replacement of the feeder bus fleet. The consortium includes AIIM-Motseng, Alstom, RATP Dev, GIBB-CREDE and AWCA Investment Holdings.
Standard Bank described the transaction as reinforcing its commitment to South Africa's infrastructure development agenda, and said it continues to structure financing solutions across Africa that support connectivity, economic growth and sustainable infrastructure.
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