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Standard Bank issues green bond via IFC
Standard Bank has issued its first green bond, a 10-year facility with the express purposes of raising capital for use in on-lending by Standard Bank Group's (SBG) Sustainable Finance Business Unit. Issued via private placement with IFC, a development finance institution focused on the private sector, part of the World Bank Group, the $200m, London Stock Exchange-listed green bond is South Africa's first offshore green bond issuance.
Image source: Gallo/Getty
The capital raised as a result will be used to finance eligible 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 part of the IFC’s Sustainability Framework, have become globally recognised as a benchmark for environmental and social risk management in the private sector.
“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,” said Sim Tshabalala, Standard Bank Group chief executive, on the launch.
“The bond showcases the role that capital markets can play in mobilising 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.
