This archive report was first published on 6 July 2020.
On July 6, 2020, the African Development Bank (AfDB) made a significant investment of $116 million in South Africa's Nedbank SDG-linked bonds.
The bonds, listed on the green bonds segment at the Johannesburg Stock Exchange (JSE), are part of Nedbank's efforts to generate capital close to $696 million through the SDG bonds.
The funds raised will support environmentally friendly projects, renewable energy, and affordable housing through loans and investments.
Nedbank aims to reach and disburse close to 20,000 SME loans through low-cost digital financing initiatives.
The Tier-2 bond issuance is a first of its kind in Africa, marking a significant milestone in the country's transition to more environmentally sound sources of energy.
Stefan Nalletamby, the African Development Bank's Director for the Financial Sector Department, stated, '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.'
The JSE has been a strong advocate for green energy, launching the green energy Index in 2004 and the green bond segment in 2017. In February 2020, it extended its green bond segment to include the sustainability segment.
