The Industrial Development Corporation (IDC) has issued a R2.05-billion inaugural sustainability bond, surpassing the R1.5-billion target with an order book of R3.46-billion.

The bonds were issued across five-, seven-, 10- and 12-year tenors, with strong demand at the long end, demonstrating investor confidence in the IDC.

Proceeds will support projects aligned with the IDC’s Sustainable Finance Framework, reinforcing its commitment to sustainable development.

This bond aligns with the development funder’s ‘New Pathways for Sustainable Industrial Development Framework’, whose objective is to guide the IDC’s strategy as it seeks to expand South Africa’s industrial capacity in a socially inclusive and environmentally responsible manner.

The development funder’s objectives include, besides others, strengthening industrialisation of the local economy, funding employment generation; socioeconomic advancement and empowerment; and climate and environmental financing.

“This is a key development in the history of the corporation. For us as the IDC, this achievement underscores the market’s confidence in our commitment to investing in sustainable and climate-resilient projects that seek to strengthen and industrialise South Africa.

“Among other projects we have a promising pipeline in renewable-energy projects including our ongoing support to commercialise the local green hydrogen economy,” says IDC CEO Mmakgoshi Lekhethe.

Meanwhile, the International Finance Corporation (IFC) subscribed more than R1-billion to the bond, affirming the international lender’s confidence in the IDC’s core mandate.

“This inaugural sustainability bond marks a significant milestone in our commitment to sustainable development. Our partnership with the IFC exemplifies the power of collaboration in mobilising capital towards impactful environmental and social projects,” Lekhethe adds.

"We are pleased to strengthen our strategic partnership with the IDC, as this collaboration marks a significant milestone in our shared commitment to fostering sustainable economic growth and development.

“Our anchor investment in the IDC's inaugural sustainable bond issuance will not only mobilise additional investor participation but also empower micro, small and medium-sized enterprises in the manufacturing sector, while supporting the government's Just Energy Transition Investment Plan,” says IFC Southern Africa regional director Cláudia Conceição.

“The IFC’s subscription to this facility reflects investor confidence in the IDC. Your decision aligns with the IDC’s long-term investment strategy of supporting sustainable economic growth and industrial development,” says IDC CFO Isaac Malevu.