Multinational logistics and port terminal operator DP World has concluded a US$365 million multi-currency facility agreement featuring letters of credit (L/Cs) with the largest bank in Africa by assets, Standard Bank, to support its logistics and market access expansion across the sub-Saharan Africa region.

The facility builds on Dubai-based DP World's recently struck partnership with Standard to provide trade finance solutions, including L/Cs, to help meet the demands of businesses in Africa for working capital.

Multi-currency facility

The multi-currency facility is split between Standard's transactional banking and investment banking products with US$150-million allocated to L/Cs, working capital, trade finance, and other general banking solutions, and US$215 million allocated to term debt financing.

The facility aims to support the logistics and port operator's general banking and term-funding requirements across all sub-Saharan African markets where DP World and Standard have an overlapping presence.

Trade finance partnership

In May, DP World announced its partnership with Standard to offer trade finance solutions jointly with DP World Trade Finance to help close the gap in unmet demand for working capital in Africa.

The partnership is aimed at companies on the continent looking for solutions to enable them to manage their working capital efficiently, reduce transaction costs, and mitigate risks associated with international trade.

This aligns with DP World's ambition of driving more efficient and sustainable trade across the region.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.