In a financial environment where purpose and performance are increasingly intertwined, Nedbank Corporate and Investment Banking (CIB) is setting a new benchmark for sustainable finance. Through a partnership with the African Development Bank (AfDB), Nedbank CIB has issued its inaugural R2.5 billion Social Tier II Capital Note, privately placed and listed on the Johannesburg Stock Exchange (JSE) Sustainability Segment on 11 November 2025.

The R2.5 billion social bond represents one of the largest single-note issuances ever listed by Nedbank on the JSE’s Sustainability Segment. It also marks a series of firsts: Nedbank’s first social bond, its largest listing in the sustainability space, and the first bond issued under the bank’s refreshed Sustainable Finance Fundraising Framework, which was verified by S&P Global in October 2025.

Beyond the financial achievement, this transaction embodies Nedbank CIB’s approach to sustainability, using the power of finance to create measurable social impact and contribute to South Africa’s long-term development.

'This issuance reflects our determination to continuously innovate for social outcomes scale within the capital markets,' says Arvana Singh, Head of Sustainable Finance Solutions (SFS) at Nedbank CIB. 'By directing proceeds to affordable-housing finance, with specific allocations to female borrowers and a subset to green-certified homes, we are using finance as a tool for progress and a driver of inclusion.'

Finance as a force for inclusion

The Social Tier II Capital Note channels private capital towards one of South Africa’s most pressing social priorities: affordable housing. Structured by Nedbank’s SFS and Debt Capital Markets (DCM) Teams, the issuance showcases the bank’s ability to integrate social purpose with market sophistication.

The proceeds will fund over 4 000 affordable homes, providing access to housing for low- and middle-income South Africans. A defined portion of the funds will support female borrowers – expanding women’s participation in property ownership – while another subset will be directed towards green-certified housing, ensuring that affordability and sustainability advance hand in hand.

Structured under Nedbank’s refreshed Sustainable Finance Fundraising Framework, the bond adheres to the 2025 International Capital Market Association and Loan Markets Association Green and Social Bond Principles, ensuring that every allocation is transparent, verifiable, and impactful.

Partnership rooted in purpose

The collaboration between Nedbank CIB and the AfDB demonstrates how institutional partnerships can drive shared value across markets and communities. The AfDB’s commitment to expanding its portfolio of high social-impact assets aligns seamlessly with Nedbank’s sustainable finance agenda, creating a partnership built on purpose and mutual accountability.

'This partnership with the AfDB not only strengthens our relationship with one of Africa’s leading development finance institutions, but also reinforces our purpose of using our financial expertise to do good,' says Nhlanganiso Kunene, Principal of Debt Capital Markets at Nedbank CIB. 'It reflects our conviction that commercial success and social value can and must coexist.'

The transaction also strengthens Nedbank’s leadership position in Africa’s sustainable capital markets, proving that the private sector can play a pivotal role in advancing inclusive economic growth.

Delivering tangible and measurable impact

Impact transparency lies at the core of the social bond. Over the life of the instrument, Nedbank will monitor and report on key performance indicators, including the number of mortgages financed for affordable housing, disaggregated by gender; the share of green-certified developments supported through the bond; and the broader contribution to housing affordability in South Africa.

'Every sustainable deal begins with intent: to create impact that outlives the transaction,' says Johan Malan, Principal: Sustainable Finance Solutions at Nedbank CIB. 'Working with the AfDB, we structured an instrument that delivers on both financial and social objectives, helping to close South Africa’s housing gap in a sustainable way.'

By embedding measurable outcomes into the structure, Nedbank CIB ensures that the social bond’s value extends far beyond the transaction date, turning responsible finance into lasting progress.

Integrating sustainability into strategy

The social bond forms part of Nedbank CIB’s broader commitment to embed sustainability into every layer of its business model. From origination to execution, the bank’s teams are guided by the principle that finance must serve a purpose greater than profit, enabling growth that uplifts communities, supports inclusion, and builds resilience.

'As a financial institution, our role is to ensure that capital flows where it’s needed most,' says Singh. 'When that capital supports inclusive growth and community upliftment, it creates lasting value for everyone involved.'

The transaction directly supports the United Nations Sustainable Development Goals (SDGs), particularly those focused on sustainable cities and communities (SDG 11) and gender equality (SDG 5).

Accountability and governance at the core

Governance and credibility remain central to Nedbank’s sustainable finance philosophy. The Sustainable Finance Fundraising Framework was externally verified by S&P Global to ensure alignment with global best practices.

Under the framework, all eligible projects financed through this bond are assessed against criteria consistent with the Banking Association of South Africa's Affordable Housing Standards and the Financial Sector Code.

'Sustainable finance is not just about good intentions,' says Malan. 'It’s about rigorous systems that make every rand accountable, ensuring that investors can see and measure the impact of their capital.'

This disciplined approach to sustainability continues to strengthen investor confidence, positioning Nedbank CIB as a trusted partner for institutions seeking both return and responsibility.

Redefining the role of finance

Beyond the frameworks and performance metrics, the social bond reflects a deeper truth: finance has the power to change lives. By transforming capital into opportunity, Nedbank CIB is helping to redefine the role of financial institutions in society.

The bank’s leadership in sustainable finance is built not only on innovation but also on empathy, understanding that every transaction has human consequences, and every investment has the potential to drive social good.

'This issuance shows what’s possible when expertise, purpose, and partnership converge,' Singh concludes. 'It reflects who we are as Nedbank, a trusted partner committed to using finance as a catalyst for positive, lasting change.'

A vision for a sustainable future

The partnership with AfDB reinforces Nedbank CIB’s vision of a financial system that advances social progress and environmental sustainability through disciplined, data-driven action. It stands as a testament to what can be achieved when the tools of finance are applied thoughtfully, with empathy, innovation, and accountability.

Through this social bond, Nedbank CIB continues to bridge the gap between investment and impact, and between capital and community. The bank’s leadership in structuring sustainable instruments underscores a simple but powerful truth: finance, when directed with purpose, can build a better future for all.

Nedbank CIB is proud to support transformative investments that unlock Africa’s digital future. Learn more about our equity capabilities and cross-sector partnerships.