Johannesburg, South Africa, March 2, 2020—IFC,
a member of the World Bank Group, invested $200 million in The Standard
Bank of South Africa Limited’s green bond placed on the London Stock Exchange
today. It’s Africa’s largest green bond and South Africa’s first offshore
green bond issuance, which will increase access to climate finance.
The 10-year green bond facility privately placed by IFC is compliant with
the International Green Bond Principles and will enable Standard Bank Group’s
Sustainable Finance Business Unit to on-lend to and finance climate-smart
projects in South Africa such as renewable energy, energy efficiency, water
efficiency and green buildings.
“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,” said Adamou Labara,
IFC’s Country Manager for South Africa.
Commercial banks currently provide 45 percent of South Africa’s financing
for renewable energy and energy-efficient projects. IFC estimates that
South Africa’s climate-smart investment potential, between now and 2030,
is $588 billion.
“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.
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.
IFC is one of the world's largest green bond issuers, with 172 issues in
20 currencies, totaling more than $10 billion. IFC is a member of the Green
Bond Principles and is part of its Executive Committee, which, combined
with its experience as an issuer and investor in green bonds, has allowed
us to support several countries globally to shape the standards and guidelines
of green bond issues.
IFC—a sister organization of the World Bank and member of the World Bank
Group—is the largest global development institution focused on the private
sector in emerging markets. We work with more than 2,000 businesses worldwide,
using our capital, expertise, and influence to create markets and opportunities
where they are needed most. In fiscal year 2019, we delivered more than
$19 billion in long-term financing for developing countries, leveraging
the power of the private sector to end extreme poverty and boost shared
prosperity. For more information, visit www.ifc.org
About Standard Bank Group
Standard Bank Group is the largest African bank by assets with a footprint
across 20 African countries. Headquartered in Johannesburg, South Africa,
the bank is listed on the Johannesburg Stock Exchange and the Namibian
Stock Exchange. The
group has more than 53,000 employees, approximately 1,200 branches and
over 9,000 ATMs on the African continent, which enable it to deliver a
complete range of banking and related financial services.