1.1 Introduction
Steward Bank Corporate and investment Banking (CIB) takes care of the Bank’s High Value corporate clients including but not limited to big corporations, financial institutions, institutional investors, financial sponsors, public-sector organizations and exporters. The Bank’s Corporate Banking Unit has a strategic focus on the following sectors.
I. Health
II. Renewable Energy
III. Exporters and Foreign Currency Generators
1.2 Facilities Offered
a) $100m HealthCare Facility
In line with the United Nations Sustainable Development (SDG) number 3: Good Health and Wellbeing, the Bank introduced a $100m Healthcare Fund with a view to improve the quality of private healthcare in Zimbabwe. Through this facility the Bank targets to finance Diagnostic centres, hospitals, clinics, medical laboratories and all specialist practitioners for purposes of commercial mortgages, Asset finance and working capital requirements.
b) $100m Renewable Energy Finance
In keeping with modern trends in the provision of clean and affordable energy and the attainment of the Sustainable Development Goal Number 7 and 13, the Bank finances the following:
• Installation of Solar PV Energy Solutions for Commercial and Industrial customers (in partnership with Distributed Power Africa (DPA) and Residential and Rural customers in (in partnership with Ugesi Solar).
• Waste Management and Smart Cities
Under Renewable Energy Finance, the following products are available:
• Asset Finance (interest rates up to 10%, 5-7-year tenure)
• Commercial Mortgages (interest rates up to 10%, 10-year tenure)
• Lines of Credit
• Green Bonds
• Carbon Finance
c) $150m Exporters Facility
In line with the business’ foreign currency mobilisation drive, the Bank finances exports generating businesses for working capital, Asset Finance and commercial mortgages.The Bank targets players across different sectors like Agriculture, Mining, Tourism,among other sectors with loans at very affordable interest rates of up to 10% p.a.
1.3 Product Offering
a) Working Capital Loans/ Overdrafts
Under the $150m Exporters Facility and the $100m HealthCare fund, the Bank Offers Working Capital loans to Exporters, Healthcare players and Renewable Energy. Working Capital Loans have a maximum tenure of 12 months. The loans come at very competitive interest rate of up to 10% p.a at a time when the market is adjusting interest rates upwards.
b) Commercial Mortgages
The Bank finances exporters and players in the Healthcare Sector for the acquisition of commercial properties by extending mortgage loans. Corporate mortgages have a maximum tenure of up to 10 years and up to 8.5% p.a interest rates.
c) Asset Finance
Through the provision of medium term loans (3-5 years), the Bank finances the acquisition and upgrading of equipment for renewable energy, exporters and players in the HealthCare Sector. This is in response to the country’s retooling requirements after decades of infrastructure dilapidation. This helps to boost productive capacity and in the case of health, assists in the provision of world class health facilities which most people are failing to access at reasonable costs.
d) Research, Capital Markets and Advisory Services
In a fast paced environment with a rapidly changing economic environment, the Bank supports corporates by:
• Providing expert advice on raising capital including debt issuance, rights issues, private placements and Initial Public Offers (IPOs);
• Negotiating and restructuring debt obligations including debt to equity swaps; • Structured finance arrangements;
• Arranging foreign lines of credit;
• Performing financial due diligence on behalf of Bank’s clients involved in mergers and acquisitions; • Conducting business valuations on behalf of transacting clients; and
• Offer financial advisory services in mergers and acquisitions transactions.
e) Balance Sheet restructuring
Through taking over and restructuring corporate clients’ liabilities with other financial institutions, the Bank assists companies to deleverage their balance sheets and finance their businesses in a sustainable way. The strategic focus in this area remains on players in the HealthCare sector and exporters.
f) Foreign Payments and switches
In facilitating international trade on behalf of its importing and exporting clients, the Bank facilitates International wire transfers via its wide network of correspondent Banks in the World’s Financial Centres. The Bank also allows for the exchange of currencies from one currency to the other by facilitating foreign exchange switch transactions on behalf of its corporate clients for same day value (SDV) or Spot transactions.
g) Value Chain linkages
In meeting with its diverse customers’ needs, the Bank supports value chain activities from design, production, marketing, and support at all stages of the value chain for its exporting customers through the provision of loans and other technical aspects of their businesses. This helps the Bank to nurture and sustain long-term business relationships on a win to win basis.