Standard Bank upsizes Motus finance package

Standard Bank has made headlines with the successful refinancing and upsizing of a multi-currency facility for JSE-listed multinational auto firm, Motus, to the tune of GBP150 million. The deal, which underscores Standard Bank's capacity to secure hard currency loan funding for clients to support their growth ambitions, has sparked discussions about the state of the corporate debt market. Brydon Graham, Head of Corporate Financing Solutions for Southern & Central Africa at Standard Bank Group, recently joined CNBC Africa to shed light on the terms of the transaction and the broader implications for the market. Standard Bank's long-standing partnership with Motus and its track record in raising significant amounts of financing for the company in the past have paved the way for this successful transaction. The support from domestic South African banks, African regional banks, and international banks reflects the confidence in Motus and the strategic approach taken in the financing process. This demonstrates the strength and appeal of South African companies when accessing international markets. Motus' market share, geographical spread, and sustainability efforts have positioned it favorably among investors, making it an attractive investment opportunity despite being domiciled in South Africa. The success of the transaction also speaks to the resilient nature of corporate capital raising and debt refinancing in the current global economic landscape. While challenges such as high inflation and interest rates persist, opportunities exist for companies with strong standing and strategic positioning in their sectors. Sustainability-linked financing, a key feature of the Motus deal, highlights the growing trend towards sustainable finance practices in the market. By linking key performance indicators related to corporate citizenship, such as water consumption, to the financing terms, sustainability-linked financing incentivizes borrowers to meet and exceed sustainability targets. This approach not only fosters environmental and social responsibility but also creates financial incentives for companies to drive positive change in their operations. The flexibility and dual benefit of sustainability-linked financing position it as a viable option for companies seeking to align their business practices with sustainable development goals. As companies navigate the complexities of the global economy and the evolving debt market, strategic partnerships and innovative financing solutions will play a crucial role in driving growth and resilience. Standard Bank's successful collaboration with Motus serves as a testament to the opportunities and possibilities that lie ahead for companies looking to secure financing and expand their presence in the international market.