The R25,2-billon, 80km Gautrain will provide a fast, safe and reliable mode of public transport to major hubs such as Sandton, central Johannesburg, Tshwane and OR Tambo International Airport.

Standard Bank played a central role in arranging the R3-billion required by the Bombela consortium, builders of the Gautrain. In 2007, we were appointed as one of the lead arrangers, underwriters and sole lenders to Bombela Concession Company's commitment to the Gautrain.

The R3-billion was a crucial factor in the whole project as Bombela needed the finance for its initial capital expenditure before it could receive payments from the government, and it meant the company could concentrate on constructing the link.

Pulling together financing on this scale takes great skill, expertise and a team that can make the right connections and build the right relationships with a host of important players. In this case, the important players included not only all the members of the Bombela consortium, but the Gauteng Provincial Government and a range of other financial institutions and legal advisers.

Two years later, the Gautrain is speeding towards completion, with Bombela saying that the route between OR Tambo International Airport and Sandton Station, including intermediate commuter stations, will be ready in time for the 2010 FIFA Soccer World Cup.

Not only will the project will go down as one of South Africa's best accomplishments to date, it will also place South Africa among those nations who boast world-class public transport systems.

Sustained economic growth in emerging markets across Africa is driving increased demand for infrastructure development, and Standard Bank is proud to be part of the many infrastructure projects that play a role in connecting Africa to the world, and the world to Africa.

Why you should talk to Standard Bank:

  • We have participated in numerous regionally important infrastructure projects on the African continent
  • We have in-depth knowledge of the power and infrastructure sector
  • We customise innovative financing solutions to meet our clients' individual requirements
  • We have extensive experience in arranging export credit for projects involving cross-border investments, specialising in customised political risk structuring involving single or multi-sourced export finance, political risk insurance and development finance products
  • We have established a track record in advising on major power utilities in Africa

Infrastructure will undoubtedly help build the Africa of tomorrow. From financing the groundbreaking Gautrain project in Gauteng to raising a bond for the Airports Company of South Africa, to underwriting risk on the construction of sports stadiums, to financing the development of a new power station in Botswana, Standard Bank is committed to laying a foundation upon which we can all build and contributing to the growth and development of our wonderful continent.

Standard Bank's work in providing the project finance for the Morupule B power project was acknowledged internationally, with the deal being recognised as the "African Power Deal of the Year" by Project Finance International magazine.

Construction has begun at Palapye in Botswana on one of southern Africa's most ambitious projects, the US$1,6-billion Morupule B Power Station expansion project.

Standard Bank Group and the Industrial and Commercial Bank of China (ICBC), a major shareholder and partner of Standard Bank, played a pivotal role in arranging the majority of the financing required to get Morupule B off the ground. Standard Bank and ICBC have opened a unique financial services gateway between Africa and China to open up more opportunities for business.

Standard Bank and ICBC submitted a single proposal which comprehensively covered all the solutions that Botswana Power Corporation (BPC) wanted. We were appointed, along with ICBC in 2009, as joint lead arrangers on the expansion project. The funding package would include a US$140-million bridge loan and a fully underwritten US$825-million 20-year term loan facility.

The Morupule expansion project involves the installation of four 150-megawatt coal-fired, air-cooled generating units. Associated projects include water supply works and the construction of transmission lines and substations for the distribution of power to the rest of the BPC grid. Construction began in February 2010? and is due to be completed in 2012.

The Morupule expansion project is a major Botswana government initiative and is aimed at boosting the country's power generation capacity. It is estimated that Botswana currently imports 80% of its power needs, with the existing Morupule Power station generating only 132-megawatts of electricity.

As part of the contract, the China National Electric Equipment Corporation (CNEEC), one of ICBC's top corporate clients, was awarded a US$970-million contract to supply and build a significant portion of the power station. CNEEC will not only create jobs for the people of Botswana, but also ensure that skills are transferred from its Chinese employees to its new employees in Botswana.

Standard Bank recently partnered with the National Treasury to raise a bond of US$2 billion, its largest global bond issue yet. Raising this US$2 billion from foreign investors is an important element within the variety of ways that government funds its investment programmes and other operations.

It takes top drawer expertise and relationships at the highest levels of global finance to arrange borrowing from foreign investors. Standard Bank was chosen to provide expertise and advice to ensure that South Africa's government got the best deal from international investors.

The success of this deal was built on the way Standard Bank's Corporate and Investment Banking (CIB) teams in South Africa, the United States, United Kingdom and Asia work together. In a tight timeframe of 48 hours, our CIB teams put together and executed an integrated solution for the client, the South African government.

The growth path that the South African government is financing was set out in this year's Budget speech, when Finance Minister Pravin Gordhan said: "In pursuing the social and economic outcomes that we desire, government is ready to forge a new growth path, and to work tirelessly to build a future in which all South Africans can take pride and share in the benefits."

This new growth path, as outlined in Gordhan's speech, includes a concerted effort to reduce joblessness among young people, supporting labour intensive industries through skills development and public employment programmes and rural development.

We can expect the US$2 billion to go a long way in funding things such as schools and hospitals, as well as helping create much-needed jobs.

By appointing Standard Bank as lead manager, the South African government demonstrated confidence in our ability to lead a transaction of this nature and achieve an unprecedented level of success.

Airports are the gateways to countries. They play a vital role in forming travellers' perceptions about the countries they visit, and can make or break a travelling experience. The Airports Company South Africa (ACSA) is responsible for managing that experience for visitors to South Africa and has being doing an excellent job!

The company has come a long way since 1993, when it was formed. Before that, South Africa's airports were owned and operated by the State. Today, ACSA, a globally competitive company, is a shining example of successful privatisation.

ACSA embarked on a drive to deliver efficient capacity expansion to match forecast passenger growth and meet the traffic demands for 2010 and beyond. To deliver on this goal, it required finance and Standard Bank Group is proud to have been able to partner with ACSA in two financial deals.

In 2007, Standard Bank was the joint lead manager in a R2-billion bond issue to raise capital for airport expansion. That same year, we were joint arranger of a R12-billion domestic medium-term note programme. The capital was to be used to upgrade two major international airports (OR Tambo and Cape Town) and construct the new King Shaka International airport in KZN, by June 2010.

By providing world-class airports, ACSA has proved that Africa is indeed catching up with the rest of the world – our infrastructural projects compete with the best in the world.

So, as the international business people scouting for investment opportunities land on our shores, we can feel proud that their African experiences will be filled with excitement about the prospects South Africa has to offer.

More than 500 years ago, Bartolomeu Diaz arrived at what he named 'The Cape of Good Hope'. Today, The Cape of Good Hope is now known as Cape Town, and more affectionately, the Mother City. And like the rest of South Africa, the city has moved on from its past.

Nowadays, The City of Cape Town is one of the economic giants among South African cities, having the second largest metropolitan municipality, and generating about 11% of the country's gross domestic product. It is the most multicultural city in the country, with many foreigners settling in the bustling, creolised party capital of South Africa.

We at Standard Bank Group are proud to have been selected to help this city in its growth. In 2009, and again in 2010, we were appointed lead arranger in two bonds issued by the city.

Only two municipalities in South Africa use bond issues as a means of borrowing. This is because of the complexity and costs of the process, which require large sums to be raised for it to be cost effective. As a bank with a sound record in arranging bonds, Standard Bank made the two recent Cape Town bond issues easy and seamless by providing our expertise and guidance to the municipality.

The first bond (CCT02) a 15-year benchmark bond, raised R1.81-million for a final issuance of R1.2-million. Issued in June 2009, it is set to mature in 2024. Distribution was diverse in investor terms, with 12 investors being allocated paper. What made this bond all the more remarkable was its success, given the economic environment in 2009.

The second bond of R2-billion, with a term of 15 years, was 1,5 times oversubscribed, reflecting the market confidence in the financial stability of the city.

The funds raised from the first bond issue have been used to fund major infrastructure projects around the city over the past year. With the latest bond issued just this past March, it is heartening to see that Cape Town is well on the way to creating a world-class city that will give tourists a reason to come back again and again.

Both bonds are listed on the Bond Exchange of SA, and Standard Bank Group is proud to have given ordinary South African investors the opportunity to be part of the growth of South Africa.