IFC Supports Standard Bank Namibia Employee Ownership through Purros Investments
IFC has 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.”
