Standard Bank Issues 10-Year $200m Green Bond

By Modupe Gbadeyanka

Africa’s largest green bond and South Africa’s first offshore green bond issuance has been done by Standard Bank of South Africa Limited (SBSA).

The bond sale was carried out through a private placement with IFC, a development finance institution focused on the private sector, part of the World Bank Group.

The 10-year green bond is worth $200 million and would be listed on London Stock Exchange (LSE). The exercise was done to raise capital for use in on-lending by Standard Bank Group’s (SBG) Sustainable Finance Business Unit and achieving longer tenor financing.

Proceeds from the bond issuance would 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 recognized as a benchmark for environmental and social risk management in the private sector.

According to Executive Head Sustainable Finance for SBG, Nigel Beck, “When it comes to financing, clients should be considering green, social and sustainable products as investors increasingly shift their mandates to sustainable businesses.

“Standard Bank is at the forefront in Africa with an innovative and dedicated sustainable finance business offering that benefits clients, communities, the environment and the corporate governance landscape.”

The IFC Regional Director for Southern Africa and Nigeria, Mr Kevin Njiraini, stated that, “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.”

Standard Bank Group Chief Executive, Sim Tshabalala, noted that, “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.”