First tangible financial charter results
The International Finance Corporation (IFC), a member of the World Bank Group, this week announced a 5-year loan of N$180 million to Purros Investments (Pty) Limited, a special purpose vehicle created to support employee share ownership in SBN Holdings Limited, the owner of Standard Bank Namibia.
Purros Investments acquired a 10% shareholding in SBN Holdings from its parent, Standard Bank Group, for the benefit of the bank’s employees in Namibia classified as historically disadvantaged, in line with the Financial Sector Charter of 2008.
The financing is made possible through the IFC’s inaugural Namib bond, the first by a supranational Triple-A issuer in Namibia, announced last month. The Namib bond expands the size of Namibia’s domestic bond market, and accelerates the development of the non-sovereign sector in a market that is dominated by government bonds.
Vetumbuavi Mungunda, Chief Executive of Standard Bank Namibia, said, “Standard Bank Group is committed to playing its part in addressing the historical inequalities in Namibia and creating new opportunities in a sustainable manner. We look forward to ensuring our employees have a long-term stake in the success of our business and the economy.”
Oumar Seydi, IFC Director for Southern and Eastern Africa, said, “Standard Bank has developed a fair and transparent process to expand share ownership among its employees in Namibia. IFC is committed to ensuring the success of projects that promote shared prosperity in Africa, help to increase the capacity of local financial institutions, and encourage the development of robust capital markets.” Standard Bank is the largest African bank by assets with a unique footprint across 20 African countries. The bank is listed on the Namibian Stock Exchange and the Johannesburg Securities Exchange.
The IFC is a member of the World Bank Group. It is the largest global development institution focused on the private sector in emerging markets. In 2015, its long-term investments in developing countries rose to nearly US$18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity.