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IFC Supports Standard Bank Namibia Employee Ownership through Purros Investments


At IFC
Desmond Dodd
Phone: +27 83 448 9873
E-mail:
ddodd@ifc.org


Windhoek, Namibia, April 6, 2016—IFC, a member of the World Bank Group, today announced a 5-year loan of 180 million Namibian dollars (approx. $12 million) to Purros Investments (Proprietary) Limited, a special purpose vehicle created to support employee share ownership in SBN Holdings Limited, the holding company of Standard Bank Namibia. Purros acquired 10 percent of SBNH 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 (2008). Namibia remains one of the most unequal societies in the world, facing significant socioeconomic challenges.

IFC’s financing offers long-term local currency funding that is not readily available in the market, and provides an endorsement of the transparency and fairness of the employee share ownership transaction. The financing is made possible through IFC’s inaugural Namib bond, the first by a supranational Triple-A issuer in Namibia, announced in March 2016. 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 Junius Mungunda, CEO 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 of Namibia.”

Standard Bank Namibia was established in 1915. Today it has 51 branches and service centers located in Namibia’s major cities and is a leading provider of retail, corporate and investment banking services to individuals, corporates, parastatals and government. The Bank is the third largest in the country in both assets and deposits.

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.”

About Standard Bank
Standard Bank is the largest African bank by assets with a unique footprint across 20 African countries.  Headquartered in Johannesburg, South Africa, Standard Bank is listed on the Namibian Stock Exchange and the Johannesburg Stock Exchange.  Standard Bank has a 153-year history in South Africa and started building a franchise outside southern Africa in the early 1990s.  Standard Bank’s strategic position enables it to connect Africa to other select emerging markets as well as pools of capital in developed markets, and its balanced portfolio of businesses provide significant opportunities for growth.  For more information, please visit www.standardbank.co.za

About IFC
FC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence, to create opportunity where it’s needed most. In FY15, our long-term investments in developing countries rose to nearly $18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity. For more information, please visit www.ifc.org

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At Standard Bank
Jacquiline Pack
Phone: +264 61 294 2421
Email: Jacquiline.Pack@standardbank.com.na