By Abdul Rahman Suagibu –
NEW AFRICA DAILY NEWS ( NADN ) Freetown, Sierra Leonne- Standard Bank of South Africa Limited has handed out its introductory perpetually green bond, via private sequence with IFC – a development finance organization directed on the private sector, part of the World Bank Group.
It is a ten-year establishment with the express intentions of elevating equity for use in on-lending by Standard Bank Group’s (SDGs), Sustainable Finance Business Unit and acquiring lengthy tenor financing.
The $200 million, London Stock Exchange-listed green bond is Africa’s largest green bond and South Africa’s first offshore green bond issuance. The money generated as an outcome will be used to finance qualified green assets (renewable energy, energy efficiency, water efficiency, and green buildings) aligned to SBG’s Sustainable Bond Framework. The IFC’s Performance Standards, which are fraction of the IFC’s Sustainability Framework, have suit globally endorsed as a criterion for environmental and social risk management in the private sector. Standard Bank Group Chief Executive – Sim Tshabalala, says, “This bond issue reflects SBG’s strategic focus on sustainable finance in line with our Social, Economic and environmental (“SEE”) value drivers and vision to drive Africa’s growth with minimal adverse impact. Our strategy aims to embed social, economic and environmental considerations into our borrowing, lending and business practices in a way that helps us to continue supporting our clients, whilst producing value for society at large.”
From Nigel Beck – Executive Head Sustainable Finance for SBG, “When it comes to financing, customers should be considering green, social and sustainable products as investors increasingly shift their statutes to sustainable businesses. Standard Bank is at the lead in Africa with an innovative and earnest sustainable finance business offering that benefits clients, communities, the environment and the corporate governance landscape.”
“The bond showcases the role that, capital markets can play in mobilizing climate-smart finance and we hope it will inspire more companies in South Africa to unlock investment for climate-related projects,” says Kevin Njiraini – IFC Regional Director for Southern Africa and Nigeria.
For New Africa Daily News Abdul Rahman Suagibu Reports, Africa Correspondent