Africa-Press – South-Africa. Nedbank Corporate and Investment Banking (CIB), a division of Nedbank, has launched a first-of-its-kind R1.09 billion green residential development bond instrument in partnership with the International Finance Corporation (IFC), international blend finance investors and commercial investors.
The bond issuance was launched on December 10 and was listed on the sustainability segment of the JSE.
The bank said the proceeds would go towards financing some of their existing and new residential property developer clients that were engaged in green design and certification of buildings in the low-to-middle-income residential space.
The transaction tapped into blend financing channelled by a UK government sponsored programme called the Market Accelerator for Green Construction.
“This will enable Nedbank to expand its portfolio of Excellence in Design for Greater Efficiencies (EDGE) certified green residential housing developments in South Africa. Nedbank sees this as a growth node for the economy given the continued demand for housing, particularly at the affordable end, after the pandemic, and it will assist in improving the market’s access to green-accredited homes,” the bank said.
Nedbank Property Finance Head of Gauteng Lending Vanessa Murray said the latest green bond would help to boost the growth of the green building market in the residential sector, which was “very much still in its infancy.”
This green bond issuance took Nedbank’s total issuance of green bonds outstanding on the JSE to R6.8 billion, making it the largest issuer of green bonds in the South African market to date.
BUSINESS REPORT
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