Grit Real Estate Income Group has today announced their soon-to-be completed syndicated real estate debt facility led by Standard Bank. This deal, once complete, will be the largest debt facility in sub-saharan Africa excluding South Africa and is in line with Grit’s carbon emission reduction and gender equality targets. 

 

This facility enables Grit to streamline their debt structure while securing $306 million worth of borrowing facilities. This multi-jurisdictional debt facility, structured and exclusively-led by Standard Bank of South Africa, included a syndication of banks such as ABSA Group and Nedbank Group. It is structured to cover Grit’s assets and and debt facilities in Mozambique, Zambia, Ghana and Senegal and a corporate level revolving credit facility.

 

As at December 2021, the pan-African real estate investor and developer declared $362.9m of reported debt with an additional $46.2 million held within its associates, totaling $409.2 million. However, this new debt refinancing arrangement replaces $279.1 million out of their current debt while securing new funding proposed for the  group’s Club Med Senegal hotel redevelopment project. 

 

The Group’s Chief Executive, Bronwyn Knight, commented in an official statement, saying

“Our debt refinance brings enhanced scale, diversification, tenor, and optimal funding costs to our broader debt portfolio. By refinancing almost all our existing debt exposures into a single sustainability-linked facility, we are streamlining our loan management process and bolstering our commitment to our ESG targets, including carbon emission reduction and gender equality.

“The cross-collateralisation and link to sustainability targets in the new facility meaningfully contributed to limiting Grit’s increases in credit spreads despite material upward pricing movements in the broader high yield debt market in 2022.

“Standard Bank of South Africa and our other debt financing partners have shown strong support for the Grit business model and potential and have assisted us in setting new benchmarks with today’s landmark sustainability-linked refinance transaction, the largest of its kind for the real estate sector in sub-Saharan Africa (excluding South Africa).

“Grit’s family of strong partnerships across the African continent enable us to deliver smart real estate focused business solutions and sustainable value for our shareholders, whilst also delivering positive impact to the people of Africa.”

 

We love your feedback! Let us know what you think about Grit’s new syndicated debt facility by sending a mail to [email protected]. 

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