Nedbank, a financial services firm, has successfully completed an R2.1-billion Green Private Power Tier 2 Bond, which is listed in the sustainability segment of the JSE. The funds from this bond will be directed towards supporting private renewable energy projects in South Africa. These private renewable energy projects encompass both commercial and utility-scale initiatives with private corporate off-takers. The primary objective is to expand renewable energy capacity, expedite the transition to a low-carbon economy, and align with the sustainability goals of the involved corporations.
Nedbank’s Corporate and Investment Banking (CIB) division played a central role in structuring and arranging this R2.1-billion Tier 2 green bond. The offering garnered strong interest from investors and was oversubscribed, underscoring the market’s endorsement of Nedbank’s unwavering commitment to sustainability and its pivotal role in financing the shift to clean energy.
Peter van Kerckhoven, Co-Head of Debt Finance Business at Nedbank Investment Banking, emphasized that the decreasing costs of renewable energy create an opportunity for South African corporates to leverage their financial capabilities to access cost-effective and environmentally friendly power, thus contributing to the nation’s energy transition.
Arvana Singh, Head of Sustainable Finance Solutions at Nedbank CIB, expressed the bank’s dedication to fostering innovation and sustainability while making a positive impact through financial expertise. She also acknowledged the trust and support of investors, partners, and stakeholders in this endeavor.
This bond issuance marks a significant milestone and affirms Nedbank’s commitment to sustainable finance and the growth of renewable energy in South Africa. It is the first bond issued under Nedbank’s recently updated Sustainable Finance Use of Proceeds Fundraising Framework, published in August. Additionally, this is the seventh green bond issuance by Nedbank since it became the first South African bank to issue green bonds in 2019.
