Nedbank issues green bond to back wind, solar in S Africa

The Darling wind farm in South Africa. Author: warrenski. License: Creative Commons, Attribution-ShareAlike 2.0 Generic

May 1 (Renewables Now) - South Africa’s Nedbank Ltd has issued ZAR 1.66 billion (USD 116m/EUR 103.6m) in Renewable Energy Bonds, just listed on the green segment of the Johannesburg Stock Exchange (JSE).

The bank targeted a ZAR-1-billion green bond issuance, but after attracting ZAR 5.4 billion of bids it upsized it to ZAR 1.66 billion, the Climate Bonds Initiative announced Tuesday. It pointed out that Nedbank is the first private sector institution in South Africa to issue a Climate Bonds Certified Renewable Energy Bond.

The proceeds from the issuance will support the construction of three solar projects and one wind farm in South Africa.

Bruce Stewart, Head of Debt Capital Market Origination at Nedbank CIB said that Nedbank has been a key supporter of the renewable energy independent power producer procurement programme (REIPPPP) in South Africa, having funded 42 transactions, worth ZAR 40 billion, across the four rounds of the programme.

Investor response to the bond offer, launched on April 24, has been overwhelmingly positive, with new investors being particularly attracted by the sustainability focus, Stewart added. Final pricing also exceeded expectations.

“While impact investing is a relatively young concept that still places a priority on financial returns first, we at Nedbank believe that this model is rapidly evolving and, in due course, the ability to demonstrate a primary focus on making a positive sustainable difference to the environment will become the ticket that organisations, banks, investors and investment vehicles need to maintain if they want to fully participate in the global economy,” Stewart commented.

(ZAR 10 = USD 0.69/EUR 0.62)

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Browse all articles from Tsvetomira Tsanova

Tsvet has been following the development of the global renewable energy industry for almost nine years. She's got a soft spot for emerging markets.

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