Financial services provider Standard Bank has successfully closed a $250-million sustainable seven-year term loan with the International Finance Corporation (IFC).

The funding will be allocated to a portfolio of green and social assets – with a specific focus on renewable energy and affordable housing subcategories.

This aligns with the group’s sustainability strategy and commitments to finance renewable energy power plants and social projects in South Africa and across the continent.

Standard Bank is focused, primarily through its sustainable finance division, on providing financial products and services that support positive sustainability outcomes, including green and social loans and bonds, sustainability-linked loans and bonds, sustainable trade and working capital solutions and impact investing.

Standard Bank sustainable finance head Sasha Cook says this treasury transaction with the IFC provides financing for both green and social assets and is the first sustainable loan IFC has concluded with a commercial bank in South Africa.

This transaction enables Standard Bank to drive greater positive environmental and social impact in the areas of renewable energy, as well as supporting the provision of finance for individuals seeking to acquire homes in the affordable housing segment.

“Increasing access to climate and affordable housing finance will help South Africa achieve sustainable and inclusive economic growth.

“IFC’s partnership with Standard Bank supports the country’s transition to a low-emissions and climate resilient economy and will expand access to affordable housing and improve the quality of life for South Africans,” says IFC country manager for South Africa Adamou Labara.

Standard Bank corporate and investment banking CE Kenny Fihla says the successful conclusion of the $250-million sustainable term loan reaffirms the bank’s focus on renewable energy and affordable housing, which will undoubtedly deliver positive environmental and social impacts in Africa.