Deutsche Bank is in talks with African nations about issuing bonds and debt restructuring. Photo Reuters
Deutsche Bank is in talks with African nations about issuing bonds and debt restructuring. Photo Reuters

Deutsche Bank to expand team in South Africa

Eyeing deals on continent
Deutsche Bank's plan will be based on a strategy rolled out in Asia over the past 20 years.
Loni Prinsloo - Deutsche Bank AG is beefing up its investment banking team and services in South Africa as part of a plan to grow on the continent.

The German lender has hired a senior corporate originator in South Africa - someone who sources clients and deal opportunities - and intends to further add to the team, country head Saloshni Pillay said in an interview. The focus is to build a deals hub for Africa as a whole, she said.

“We will continue to build on what we have with a select number of clients and deliver to them,” said Pillay. “Then we have identified a broader client base that we will be targeting, really to build a pipeline of deals and work for 2023-2024.”

Pillay was hired by Deutsche earlier this year from Absa to rebuild after staff numbers fell during two waves of global reorganizations the lender carried out in 2018 and 2019. Early wins included advising on a US$2 billion deal when DP World acquired Imperial Logistics.

The South African office employs 68 people, Pillay said. Deutsche has had a presence in the country since 1979.

GROWTH OPPORTUNITY

Deutsche has identified Africa as a growth opportunity, and will help clients looking to invest there or incumbents seeking to access different banking services, co-chief executive officer for the Middle East and Africa, Kees Hoving, said in the same interview.

The plan will be based on a strategy rolled out in Asia over the past 20 years, he said.

“There is huge interest in the continent when it comes to sectors like commodities, food, and energy, and we want to follow our clients and service their cross-border needs,” Hoving said. “We have identified our global clients that also have subsidiaries in South Africa, and Saloshni’s team is talking to those clients.”

Deutsche is in talks with African nations about issuing bonds and debt restructuring, Hoving said, as countries look to shore up finances to deal with the impact of Covid-19 and Russia’s invasion of Ukraine.

The bank has gone from the 13th-biggest regional bond arranger in 2021 to number four this year, according to data compiled by Bloomberg. Last month, it assisted with a US$1.5 billion loan facility for Transnet.

OFFSHORE SOLUTIONS

African countries talking to the International Monetary Fund will most likely commit to increasing local production to cut imports and boost exports, Hoving said.

There is also work underway to bolster Deutsche’s private banking and wealth business in Africa, Pillay said.

“Clients are looking for investment and solutions to go offshore, and to diversify away from certain currencies,” she said.

The lender has hired HSBC banker Paul Sayers as head of its international private bank in Africa. Three other senior relationship and investment managers from HSBC, who worked with Sayers, also joined. – Fin24/Bloomberg

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Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 213.91/OZ UP +1.06% | Copper US$ 3.98/lb UP +0.02% | Zinc US$ 2 456.10/T DOWN -0.02% | Brent Crude Oil US$ 87.14/BBP UP +0.87% | Platinum US$ 908.98/OZ UP +1.58% Sport results: Weather: Katima Mulilo: 19° | 37° Rundu: 17° | 33° Eenhana: 18° | 33° Oshakati: 20° | 31° Ruacana: 19° | 33° Tsumeb: 17° | 29° Otjiwarongo: 16° | 28° Omaruru: 18° | 31° Windhoek: 17° | 28° Gobabis: 17° | 28° Henties Bay: 16° | 19° Wind speed: 24km/h, Wind direction: S, Low tide: 10:54, High tide: 04:57, Low Tide: 22:58, High tide: 17:16 Swakopmund: 15° | 17° Wind speed: 29km/h, Wind direction: SW, Low tide: 10:52, High tide: 04:55, Low Tide: 22:56, High tide: 17:14 Walvis Bay: 16° | 22° Wind speed: 33km/h, Wind direction: SW, Low tide: 10:52, High tide: 04:54, Low Tide: 22:56, High tide: 17:13 Rehoboth: 18° | 29° Mariental: 22° | 32° Keetmanshoop: 21° | 34° Aranos: 21° | 31° Lüderitz: 15° | 29° Ariamsvlei: 23° | 34° Oranjemund: 15° | 21° Luanda: 27° | 30° Gaborone: 20° | 32° Lubumbashi: 17° | 24° Mbabane: 15° | 23° Maseru: 12° | 28° Antananarivo: 16° | 27° Lilongwe: 17° | 29° Maputo: 20° | 28° Windhoek: 17° | 28° Cape Town: 17° | 23° Durban: 21° | 25° Johannesburg: 18° | 28° Dar es Salaam: 26° | 32° Lusaka: 18° | 30° Harare: 15° | 31° Economic Indicators: Currency: GBP to NAD 23.87 | EUR to NAD 20.45 | CNY to NAD 2.62 | USD to NAD 18.95 | DZD to NAD 0.14 | AOA to NAD 0.02 | BWP to NAD 1.33 | EGP to NAD 0.39 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.74 | ZWL to NAD 0.04 | BRL to NAD 3.8 | RUB to NAD 0.2 | INR to NAD 0.23 | USD to DZD 134.3 | USD to AOA 832.63 | USD to BWP 13.71 | USD to EGP 47.35 | USD to KES 130.98 | USD to NGN 1415.13 | USD to ZAR 18.96 | USD to ZMW 24.77 | USD to ZWL 321 | Stock Exchange: JSE All Share Index 73909.5 Up +0.41% | Namibian Stock Exchange (NSX) Overall Index 1516.02 Down -0.13% | Casablanca Stock Exchange (CSE) MASI 12981.98 Up +0.34% | Egyptian Exchange (EGX) 30 Index 28224.37 Down -2.87% | Botswana Stock Exchange (BSE) DCI Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 213.91/OZ UP +1.06% | Copper US$ 3.98/lb UP +0.02% | Zinc US$ 2 456.10/T DOWN -0.02% | Brent Crude Oil US$ 87.14/BBP UP +0.87% | Platinum US$ 908.98/OZ UP +1.58%