Standard Bank London (SBL), the wholly owned investment-banking subsidiary of South Africa's Standard Bank Group, is preparing to launch a fund that will invest in the debt and equity of energy and energy-related projects in the Middle East and North Africa (see Banking Special Report, pages 31-32).
The fund, which is targeting between $750 million-1,000 million in its initial stages, will source money predominately in the region.
The investment vehicle is likely to be made up of three parts. The first, expected to be worth about $300 million, will be invested in senior long-term debt packages. The second tranche, which is aiming to raise $450 million, will be used to take equity positions in brownfield and greenfield developments and in established projects. There is also potential for a third, Islamically structured tranche, which could be worth about $250 million.
SBL has already had a warm response from prospective investors and is expecting to have obtained finance on a fully committed basis by the middle of next year.
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