AfDB Invests $116 Million in Nedbank’s SDG – Linked Bonds
The African Development Bank (AfDB) has invested $116 Million in South Africa’s Nedbank SDG – Linked bonds. The bonds are under the green bonds segment at the Johannesburg Stock Exchange (JSE).
Nedbank is targeting to generate capital close to $ 696Million through the SDG bonds. The money raised will support environmentally friendly projects, renewable energy, and affordable housing through loans and Investments. Additionally, Nedbank is targeting to reach and disburse close to 20,000 SME loans through low-cost digital financing initiatives. The Tier – 2 bond issuance is first of its kind in Africa.
We are very pleased to be able to support the South African economy by injecting investment into the private sector through a responsible and trusted partner who is committed to responsible investing.Stefan Nalletamby, the African Development Bank’s Director for the Financial Sector Department
The JSE has been an advocate for green energy. In 2004 it launched the green energy Index in its stocks, which prompted listed companies to be more energy efficient by measuring indicators related to the environment, social, and governance practices. It made a milestone in 2017 when it launched the green bond segment, and just this year, February 2020, it extended its green bond segment by Introducing the sustainability segment.
South Africa mainly depends on Coal generated power. Through this great stride, it seeks to transition from coal power to more environmentally sound sources of energy in the next ten years, which requires a great deal of investment.