Tolaram secures term financing from Standard Bank
The transaction highlights the importance of financing solutions that evolve alongside a client’s needs.
By Standard Bank
Following the successful execution of a strategic acquisition, Standard Bank Corporate and Investment Banking (CIB) partnered with Tolaram once again to provide a bespoke term financing solution. The facility refinanced the bridge funding used to support the original transaction and represents the next phase in a relationship focused on delivering capital solutions that evolve alongside the client’s strategic ambitions. The transaction demonstrates how financing requirements change as businesses move from acquisition execution to long-term value creation. By transitioning from bridge funding to a term facility, Tolaram was able to establish a funding structure better aligned to its ongoing growth objectives.
Standard Bank Corporate and Investment Banking (CIB) structured and delivered a bespoke term financing facility for Tolaram to refinance bridge funding associated with a previously completed strategic acquisition. While the original transaction focused on enabling acquisition execution, this phase centred on establishing a longer-term funding structure aligned to the client’s capital management objectives and growth plans.
Tolaram is a leading Pan-African diversified FMCG group with operations that contribute to industrialisation, food security, manufacturing capacity and economic development across the continent. The group’s investments support sectors that play a critical role in strengthening local value chains and driving sustainable growth.
Standard Bank CIB acted as financier and structuring bank for the transaction. Our role brought together specialist expertise across Equity Finance, Debt Financing Solutions, Legal, Credit Risk and Operations. Working closely with the client, we structured a financing solution tailored to Tolaram’s funding requirements, investment horizon and broader strategic objectives.
Having supported the original transaction, we were able to build on our understanding of the client’s business, transaction dynamics and financing needs. This enabled us to structure a term facility designed to take out the bridge funding and support the next stage of the client’s growth journey. The facility provides a more sustainable long-term capital structure while maintaining flexibility for future strategic opportunities.
The solution incorporated a fit-for-purpose covenant framework designed to support sustainable business growth and long-term value creation. Collaboration across multiple specialist teams and jurisdictions ensured efficient execution while maintaining an appropriate risk framework throughout the process.
The transaction highlights the importance of financing solutions that evolve alongside a client’s needs. While bridge facilities provide funding certainty during transaction execution, term financing can provide a more suitable long-term funding structure once an acquisition has been completed. This transition is an important step in supporting integration, growth and capital optimisation following a strategic transaction.
This deal reflects the depth of the relationship between Standard Bank CIB and Tolaram. From supporting strategic acquisition activity to providing longer-term refinancing solutions, our role has evolved alongside the client’s needs. The transaction demonstrates our ability to deliver financing solutions across multiple stages of the investment lifecycle, from acquisition funding through to long-term capital management.