Namibia issues its 1st Green Bond

Namibia has announced the launch of its green bond. By doing this, Bank Windhoek became the first commercial bank to issue a green bond not only in Namibia but also across southern Africa.

The green bond is listed on the Namibia Stock Exchange and complies with the Sustainable Stock Exchanges (SSE) Initiative, a United Nations (UN) Partnership Program of the UN Conference on Trade and Development (UNCTAD), and the U.N. Global Compact. The plan of the SSE is to build the capacity of stock exchanges and securities market regulators so that it can endorse responsible investment in sustainable development and progress the performance of corporate companies on issues of environmental and social impact as well as governance.

“The issuance of Namibia’s first green bond is testament to Bank Windhoek’s vision to be the financial partner of choice, ultimately leading to positive change in the country and the southern African region. We want to thank our first investors Old Mutual and the Government Institutions Pension Fund for their trust and commitment to the Green Bond,” said Claire Hobbs, Chief Treasurer of Bank Windhoek.

Over the last two years, green bonds have become increasingly popular, with sustainability emerging as the key metrics in deciding both financing commitments as well as the fate of several development projects. According to reports, total green bonds issued in 2017 were $155 billion, and in the H1 alone it stood touched $75 billion. Green bond issuance in CY 2018 is forecasted to touch between $250 billion to $300 billion.