Standard Bank’s Corporate and Investment Banking (CIB) division has deepened its long-standing relationship with Tolaram, structuring a bespoke term financing facility to refinance bridge funding used in a recent strategic acquisition, marking a new phase in the partnership as the pan-African FMCG group shifts toward long-term growth and capital optimization.

From acquisition to long-term capital strategy

The financing follows Standard Bank’s earlier role in supporting Tolaram’s acquisition of a controlling stake in Guinness Nigeria, a transaction completed on Sept. 30, 2024. While the initial bridge facility ensured swift execution of the deal, the newly structured term financing provides a more sustainable capital structure aligned with Tolaram’s long-term investment horizon.

This transition reflects a broader financing lifecycle trend, where short-term acquisition funding gives way to structured, longer-duration capital solutions designed to support integration, expansion, and value creation.

Standard Bank CIB acted as both financier and structuring bank, bringing together expertise across equity finance, debt solutions, legal structuring, credit risk, and operations. The result was a tailored facility designed around Tolaram’s evolving funding needs and strategic objectives.

Strengthening a multi-decade partnership

Having worked with Tolaram for more than two decades, Standard Bank leveraged deep institutional knowledge of the group’s operations and growth strategy to deliver a financing solution that balances flexibility with long-term stability.

The facility includes a covenant framework structured to support sustainable growth while preserving room for future strategic opportunities. Cross-border collaboration across multiple jurisdictions ensured efficient execution within a disciplined risk framework.

“This transaction is a new milestone in Tolaram’s journey to broadening its footprint across Africa’s FMCG landscape,” said Yewande Sadiku, Head of Investment Banking, Africa Regions & International at Standard Bank.

Building on a landmark Guinness Nigeria acquisition

Standard Bank previously played a central role in Tolaram’s acquisition of a 58.02% stake in Guinness Nigeria from Diageo Plc, acting as sole M&A advisor and mandated lead arranger. The bank also provided foreign exchange solutions, escrow and custody services, and brokerage support in Nigeria.

The deal allows Guinness Nigeria to remain listed while leveraging Tolaram’s extensive distribution network to unlock new growth opportunities across the country.

Tolaram executives credited Standard Bank’s solution-driven approach for navigating Nigeria’s complex macroeconomic environment and delivering a seamless transaction despite regulatory and financial challenges.

Expanding impact through infrastructure and industry

Beyond corporate transactions, Standard Bank has also supported large-scale infrastructure financing tied to Tolaram’s ecosystem. In May 2024, its Nigerian subsidiary, Stanbic IBTC, issued a N53 billion bond to fund the Lagos Free Zone, a major industrial and logistics hub integrated with the Lekki Deep Sea Port.

Spanning approximately 850 hectares, the Lagos Free Zone is designed to attract local and foreign investment, offering manufacturing, logistics, and trade infrastructure alongside streamlined customs processes. The project aims to strengthen Nigeria’s industrial base, improve supply chains, and boost export capacity.

Tolaram’s expanding African footprint

Founded in 1948 in Indonesia, Tolaram has grown into one of Africa’s largest FMCG players, with more than $1 billion invested in manufacturing facilities across the continent. Its operations span food production, personal care, and consumer goods, serving millions of customers through an extensive distribution network.

The group’s investments continue to support industrialization, food security, and local value chain development across Africa, positioning it as a key player in the continent’s economic transformation.

What comes next

With the refinancing now in place, Tolaram is expected to focus on integrating its recent acquisition, scaling operations, and unlocking synergies across its FMCG portfolio.

For Standard Bank, the deal reinforces its role as a long-term capital partner capable of supporting clients across every stage of the investment lifecycle, from acquisition funding to sustainable growth financing.

As competition intensifies and capital markets evolve, the ability to structure adaptive financing solutions will remain critical for companies navigating Africa’s next phase of economic expansion.