Reinforcing environmental stewardship with the IFC green loan

Driving sustainable development and market growth

This landmark deal builds on the success of the R1.09 billion green residential development bond issued in December 2020, which set a new benchmark for green finance in the banking sector. The newly secured IFC green loan will be instrumental in financing renewable energy projects, green buildings, and other sustainable initiatives, providing much-needed capital to drive sustainable property development funding in South Africa.

A key differentiator for this initiative is a partnership with the UK–IFC Market Accelerator for Green Construction (MAGC) Programme, which offers performance-based incentives to reduce financial barriers for developers. By leveraging these incentives, Nedbank is making green finance and sustainable development more accessible and commercially viable, accelerating the growth of environmentally friendly property finance solutions.

 

Transforming the property development landscape

The impact of this deal extends far beyond finance. It plays a crucial role in climate change and green finance initiatives by supporting the transition to a low-carbon economy. The funds will support energy and water-efficient green building finance projects, reducing carbon emissions and promoting sustainability. It will also help to address the housing shortage by delivering affordable, green-accredited homes for low- to middle-income earners. By attracting capital green finance investments, Nedbank is fostering sustainable economic development in South Africa.

 

Building on a strong foundation

Nedbank CIB’s expertise in blended finance, which combines public and private capital to fund impactful projects, has made us a trusted partner for leading global institutions like the IFC. Previous successful initiatives include 1 790 EDGE-certified green units including 1 305 affordable-housing units that have already been delivered to the market. We also demonstrated our green leadership in facilitating the EDGE certification of the Mall of Africa deal, the largest retail asset globally to be EDGE certified.

With several Nedbank employees and clients receiving EDGE training by the IFC, Nedbank is positioned as the only financial institution in Africa with an in-house EDGE certification team.

 

Leading the green finance revolution

Industry experts in the Nedbank Property Finance Team continue to provide unparalleled support and advisory services to clients. The combination of IFC green loans, performance-based incentives, and green certification expertise sets Nedbank apart as a leader in green finance development.

This strategic collaboration supports sustainable initiatives for companies and drives long-term economic and environmental benefits for communities, making  Nedbank the go-to partner for green finance projects in South Africa.