The Standard Bank Group, parent company of Stanbic Bank Ghana has announced the successful closure of a USD 250 million sustainable term loan.
The facility, concluded with the International Finance Corporation (IFC), marks another significant step towards entrenching Standard Bank’s sustainability commitments.
According to the bank, the funding will be allocated to a portfolio of green and social assets – with a specific focus on renewable energy and affordable housing sub-categories, aligning with the Group’s sustainability strategy and commitments to finance renewable energy power plants and social projects in South Africa and across the continent. The facility is structured as a seven-year term loan.
Standard Bank is focused, primarily through its sustainable finance division, on providing financial products and services that support positive sustainability outcomes, including green and social loans and bonds, sustainability-linked loans and bonds, sustainable trade and working capital solutions and impact investing.
Sasha Cook, Head of Sustainable Finance at Standard Bank Group noted that the treasury transaction with the IFC provides financing for both green and social assets and is the first sustainable loan IFC has concluded with a commercial bank in South Africa.
“This transaction enables Standard Bank to drive greater positive environmental and social impact in the areas of renewable energy, as well as supporting provision of financing for individuals seeking to acquire homes in the affordable housing segment.”Sasha Cook
Increasing Access to Climate and Affordable Housing Finance
Adamou Labara, IFC Country Manager for South Africa, on his part, said “Increasing access to climate and affordable housing finance will help South Africa achieve sustainable and inclusive economic growth”.
“IFC’s partnership with Standard Bank supports the country’s transition to a low-emissions and climate resilient economy and will expand access to affordable housing and improve the quality of life for South Africans.”Adamou Labara
Commenting on the facility, Kenny Fihla, Chief Executive for Corporate and Investment Banking at Standard Bank Group said, “The successful conclusion of this USD 250 million sustainable term loan reaffirms our focus on renewable energy and affordable housing, which will deliver positive environmental and social impacts in Africa”.
Standard Bank Group is the largest African bank by assets, operating in 20 African countries and 5 global financial centres. Headquartered in Johannesburg, South Africa, the Group has a 161-year history in South Africa and started building a franchise outside southern Africa in the early 1990s.
The International Finance Corporation on the other hand, is an international financial institution that offers investment, advisory, and asset-management services to encourage private-sector development in less developed countries. The IFC is a member of the World Bank Group and is headquartered in Washington, D.C. in the United States.