IFC Capitalizes $200 Million in Prominent Green Bond in Africa

IFC said in a statement that this bond will help in enabling Standard Bank Group’s Sustainable Finance Business Unit to on-lend to and finance climate-smart projects in SA, for example, renewable energy, energy efficiency, water efficiency, and green buildings

March 05, 2020. By News Bureau

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IFC has announce that it has invested about $200 million lately in the green bond issuance of Standard Bank of South Africa positioned on the London Stock Exchange (LSE).

Standard Bank Group is the leading African bank by assets having existence through 20 African countries.

This is Africa’s largest green bond and South Africa’s (SA) first offshore green bond issuance, which is targeting to increase access to climate finance.

Remarking on the development, Adamou Labara, IFC’s Country Manager for South Africa, said that “this bond is a landmark placement for South Africa and will contribute to financing South Africa’s green economy. We hope it will catalyze interest in green investments from other actors in the country.”

This is a 10-year green bond facility privately placed by IFC, and is compliant with the International Green Bond Principles.

IFC said in a statement that this bond will help in enabling Standard Bank Group’s Sustainable Finance Business Unit to on-lend to and finance climate-smart projects in SA for example renewable energy, energy efficiency, water efficiency and green buildings.

“When it comes to financing, clients should be considering green, social and sustainable products as investors increasingly shift their mandates to sustainable businesses,” said Nigel Beck, Standard Bank Group’s executive head of Sustainable Finance.

Presently, commercial banks provide 45 percent of SA’s financing for renewable energy and energy-efficient projects. However, IFC has projected approx. $588 billion as SA’s climate-smart investment potential between now and 2030.

Projects funded by the green bond have the potential to reduce greenhouse gas emissions by 742,000 tons per year, or nearly 3.7 million tons over a five-year period, IFC estimates.

In FY 2019, IFC has provided over $19 billion in long-term financing for developing countries.

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