This is the second Certified Climate Bond to be issued from South Africa, after the ZAR 1 billion issuance from the City of Cape Town, which was linked to water infrastructure assets in July 2017.
Nedbank Limited is a subsidiary of the Nedbank Group, which is one of the largest financial services groups in South Africa. In 2018, Nedbank Group had a market capitalisation of ZAR 125 billion (USD 8.7 billion). The company operates as a general services bank.
In 2017, Nedbank Limited signed up to the Principles for Positive Impact Finance, an initiative of the UN PRI. It has since begun aligning its reporting and lending activities with the SDGs and South Africa’s Nationally Determined Contributions (NDCs).
In 2018, the Government of South Africa announced a 2030 target of 26% of its electricity generation to come from wind and solar generation. Currently, the majority of its electricity generation comes from coal power.
The proceeds of this issuance will be used to finance the construction of three new solar farms and 1 new wind farm in South Africa. The total installed capacity of the assets is 345 MW.
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DATE OF ISSUE |
TYPE OF INSTRUMENT |
SIZE |
TENOR |
COUNTRY OF ISSUE |
CLIMATE BONDS SECTOR CRITERIA |
VERIFIER'S REPORT |
ANNUAL REPORT | FURTHER INFORMATION |
|---|---|---|---|---|---|---|---|---|
| April 2019 | Use of Proceeds Bond | ZAR1.66bn (USD116m) | up to 7 years | South Africa | Solar, Wind | pre issuance verification report | news article | |
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October 2019 |
Use of Proceeds Bond | ZAR 1 billion (USD 68m) | up to 5 years | South Africa | Solar, Wind | pre issuance verification |