Nedbank Limited issues first private sector Climate Bonds Certified green bond in South Africa
A first for the Private Sector in South Africa
LONDON: 30/04/19 14:00 GMT: Nedbank Limited has become the first private sector institution in South Africa to issue a Climate Bonds Certified Renewable Energy Bond pioneering the way for other private sector players in the local market.
The Renewable Energy Bonds were auctioned on 24th April 2019, attracting bids of ZAR5.4bn. Targeting an issuance size of ZAR1bn with an option to upsize, Nedbank issued ZAR1.66bn to accommodate all investor bids at the clearing levels thus demonstrating significant demand for the Renewable Energy Bond with an oversubscription of 3.28 times. Pricing expectations, supported by the significant oversubscription, also exceeded with the notes pricing mid guidance in the 3-year space and at the tighter end of guidance in the 5 and 7-year space.
The proceeds of this Renewable Energy Bond will be applied towards the construction of four new renewable energy projects located in South Africa (3 solar projects and 1 wind project), thereby bringing additional cleaner renewable energy sources to the global energy mix and reducing C02 emissions to the environment.
Chair of the Board (African Local Currency Bond Fund on behalf of KfW):
“The ALCB Fund is delighted to have participated in Nedbank's pioneering green bond. It is vital that institutions such as Nedbank act as leaders in promoting sustainable investing among institutional investors.”
“The Fund has been actively promoting green bonds in South Africa – this issuance is the first private-sector green bond to apply the Climate Bonds Standard and the first to target the country’s successful renewable energy programme.”
“We hope to see further green bonds – and other social bonds – issued under Nedbank’s Sustainable Development Goal framework and being replicated by other players in the market.”
Sean Kidney, CEO, Climate Bonds Initiative:
"With this Certified green bond, Nedbank are taking a leadership role on green finance in South Africa. Building climate-based and sustainable investment markets to help nations achieve their NDC targets requires financial institutions - banks, insurers and pension funds to step up. Nedbank have done just that. Congratulations."
Climate Bonds Contact:
Head of Communications & Media
Notes for Journalists
About Climate Bonds Initiative: The Climate Bonds Initiative is an investor-focused not-for-profit, promoting large-scale investment in the low-carbon economy.
It undertakes advocacy and outreach to inform and stimulate green bond markets, provides policy models and government advice, international development programmes, market data and analysis and administers the Standards & Certification Scheme. For more information, please visit www.climatebonds.net.
About Nedbank: Nedbank Group Limited is a public company listed on the Johannesburg Stock Exchange and Namibian Stock Exchange. Nedbank Limited, the principal banking subsidiary of Nedbank Group Limited, is the market leader in renewable energy financing in South Africa. Nedbank signed up to the Principles for Positive Impact Finance, through the UNEP Finance Initiative and is a purpose driven organisation aimed at using its financial expertise to do good. More information is available here.
About ACLB: The African Local Currency Bond Fund (ACLB) was conceived by KfW to address the current underdevelopment of local currency bond markets in Africa. The goal is to improve access to long-term funding in local currency, strengthen the capacity of local markets and create opportunities for local investors.
In order to do so, the Fund acts as an anchor investor and provides technical assistance for local currency bond issuances by financial service providers and companies operating in developmental sectors. This includes the financial inclusion, agriculture, housing, education and renewable energy sectors. More information is available here.