Nedbank Corporate and Investment Banking (CIB) has been recognised with the prestigious Impact Loan of the Year Award at the Environmental Finance Impact Awards. This award honours the bank as a leader in sustainable finance and demonstrates its unwavering commitment to environmental stewardship and socioeconomic development across Africa.

Nedbank plays a key role in driving the continent’s transition towards a greener future

This award was given for Nedbank CIB’s key role in structuring a R2.5 billion green loan for ENGIE Southern Africa and its partner Pele Green Energy. The transaction supports the construction and development of the Grootspruit and Graspan solar plants, which form part of South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPP) Round 5. With a combined capacity of 150 MW, these projects represent a significant step towards improving energy security and addressing the country’s ongoing power challenges.

Marcelo Soares, Chief Financial Officer at ENGIE Southern Africa, highlighted the significance of this transaction: 'This innovative financing highlights ENGIE’s dedication to accelerating South Africa’s renewable energy transition while addressing critical energy security challenges. By partnering with leaders like Nedbank CIB, we are advancing impactful solutions for a sustainable future.'

By adhering to international best practices, including the Green Loan Principles, Climate Bonds Initiative (CBI) Standards, and South Africa’s Green Finance Taxonomy, the project has set a benchmark for sustainable finance in the region.

Boosting energy security and green solutions

The primary objective of this project is to help solve South Africa’s electricity issues by adding renewable energy to the national grid. This aligns with the overall aim to move towards a greener economy and tackling major economic challenges in the country. These efforts are essential to creating a sustainable energy ecosystem that benefits future generations.

By structuring a financing package that includes environmental goals, Nedbank CIB encourages using renewable energy while promoting responsible energy development. This creative approach shows the transformative potential of blending financial expertise with sustainability objectives.

Working together effectively

Nedbank CIB’s collaboration with ENGIE Southern Africa and Pele Green Energy highlights the power of strategic partnerships in achieving impactful results. As the sole sustainability coordinator, joint global mandated lead arranger, and original lender, Nedbank CIB played a critical role in ensuring that this deal was financially viable without compromising on its environmental integrity.

Gqi Raoleka, Chief Executive Officer of Pele Energy Group, emphasised the importance of collaboration: 'This award is a testament to the power of partnership and innovation in addressing South Africa’s energy challenges. By joining forces with Nedbank CIB and ENGIE, Pele Green Energy is proud to contribute to the country’s renewable goals while fostering sustainable economic growth. Projects like Grootspruit and Graspan exemplify our commitment to delivering impactful solutions that power a greener and more secure future for all South Africans.'

This partnership reflects a shared commitment to combating climate change through innovative, scalable solutions, and it underscores the importance of multi-stakeholder collaboration in achieving long-term environmental objectives. It also highlights Nedbank CIB’s leadership in tackling tough issues using custom financial models that blend economic growth with environmental objectives.

Changing South Africa’s energy scene

These solar power plants are expected to lower South Africa’s need for fossil fuels. By boosting renewable energy capacity on the grid, these projects will help meet climate targets and improve the quality of life.

Additionally, this green loan setup emphasises the importance that the financial sector plays in promoting sustainable development across the continent. By tying loan conditions to environmental performance metrics, it ensures responsibility and long-lasting sustainability in the energy sector.

Leading sustainable finance forward

Nedbank CIB’s win at the Environmental Finance Impact Awards reaffirms its standing as a leader in sustainable finance. This achievement reflects not only its expertise but also its purpose-driven approach to aligning financial solutions with broader social and environmental objectives.

Anél Bosman, Managing Executive at Nedbank CIB, reinforced this commitment: 'This award is a testament to our unwavering commitment to our clients and South Africa. We leverage our financial expertise and innovative financing solutions to drive sustainable development. By supporting these critical infrastructure projects, we are advancing our country's renewable energy goals, energy security, and economic growth.'

Looking forward, Nedbank CIB plans to grow its range of sustainability-focused deals. By encouraging innovation and collaboration, they hope to drive positive change across Africa and beyond while setting new benchmarks for financial institutions focusing on enabling sustainable growth.

A commitment to eco-friendly growth

As the financial sector continues to evolve, Nedbank CIB’s leadership in sustainable finance will play a critical role in shaping Africa’s transition towards a greener, more inclusive economy. By tackling big problems like energy security and climate change, the bank has shown how financial expertise can serve as a force for good in building a more sustainable future.