Good news for clients who will enter into syndicated loan transactions is that leading local banks and commercial law firms have collaborated to establish the African Loan Markets Association (ALMA).

ALMA is aligned with the London Loan Markets Association (LMA) and connected to a global network of similar groupings seeking to enhance efficiency and improve standards of syndicated loan documentation for the industry.

Launched in Johannesburg on 29 September 2011, the ALMA "aims to provide a comprehensive suite of syndicated loan documents adapted for the South African market and to offer simplified English law, Nigerian law and Kenyan law documentation for use elsewhere in Africa. In the long term, the ALMA will promote the development of a local secondary market for loan sales and trading".

Werksmans is proud to be associated with the ALMA and has played in integral part in reviewing, commenting on and producing the proposed standard documentation. The firm has also committed to sharing knowledge and offering appropriate training to benefit industry players.

Other objectives of the ALMA include developing common market practices, offering advanced training and education, and providing networking opportunities.

Subscription-based membership is open to all stakeholders in African financial markets.

The fact that the industry is gearing up to facilitate loans quickly is a very positive development for South Africa and Africa as a whole. Organisations interested in investing in the continent will be able to do so confident that financing documentation meets global standards.

Werksmans is a member of the LMA and is in the process of registering as a member of ALMA.

Contact:
Richard Roothman at Werksmans Attorneys
Direct line: +27 (0)11 535 8115
Email: rroothman@werksmans.com