Standard Bank has succeeded in creating a multi-million dollar debt refinancing facility tied to sustainability the Grit Real Estate Income Group.

The sustainability-linked term loan and revolving credit facility, worth up to $306 million, is considered the largest of its kind to date for the sub-Saharan African (excluding South Africa) real estate sector.

The terms of the loans are focused on enabling Grit to make positive environmental, economic and social changes in the way it conducts its business.

"By refinancing nearly all of our current debt exposures into a single sustainability-linked facility, we are streamlining our loan management process and strengthening our commitment to our ESG goals, including carbon emissions reduction and gender equality," said Grit CEO Bronwyn Knight.

The syndicated facility - aligned with the environmental, social and governance (ESG) objectives of the Grit - was structured and led exclusively by Standard Bank.

The bank acted as the sole mandated lead arranger and securities broker for the transaction, which covers Grit's assets and credit facilities in Mauritius, Mozambique, Zambia, Ghana and Senegal.

The pan-African real estate company said in a statement that the refinancing ensures that its debt structures have longer terms and are more efficient, flexible and optimally priced.

The mechanism is linked to Grit's goals of reducing carbon emissions and gender equality, creating financial incentives to transform assets and to provide a greater positive impact to investments.

As of December 31, 2021, Grit had a total of $409.2 million in outstanding debt, comprised of $362.9 million reported and $46.2 million held by its members.

The new credit facility replaces the existing $279.1 million debt and secures additional financing for the Club Med Senegal rehabilitation project.

Grit said the refinancing benefited from strong support from its existing senior lenders, including Standard Bank, ABSA Group and Nedbank Group, which increased their participation in the syndication and replaced the Bank of China's $76.4 million (as of December 31, 2021) Zambian credit facility, which is now being fully repaid. (EN)