The International Finance Corporation (IFC), a subsidiary of the World Bank Group, has provided a loan of $ 200 million to South African bank Nedbank to increase funding for renewable energy projects in South Africa. The aim is to help the country switch to cleaner forms of energy, reduce greenhouse gases (GHGs) and create jobs in the renewable energy sector.
The transaction represents the third dedicated green finance investment in South Africa’s financial sector and is part of IFC’s broader goal to grow the South African climate finance market.
Nedbank is the first commercial bank in the country to launch a green bond on the JSE, on a local exchange. The loan will allow the bank to expand its green finance operations and grow its climate portfolio by financing renewable energy projects, and enable the country to transition to cleaner sources of power generation.