Standard Bank secures $250m loan from IFC to boost green financing initiatives
Financial services firm Standard Bank has successfully closed a $250-million, seven-year unsecured loan from the International Finance Corporation (IFC), which will significantly bolster the bank's efforts in promoting sustainable development through green financing.
The funds will be allocated towards green buildings and green home loans, which is designed to expand access to financing for green buildings, help developers overcome the upfront cost barriers associated with sustainable construction and certification, and facilitate end consumer finance to acquire green homes, Standard Bank said.
Through this facility, it will provide tailored financial solutions to real estate developers and home buyers that align with global best practices for green construction.
The funds will support greenfield projects in industrial, retail and residential subsectors, with a focus on affordable housing within the residential subsector.
Further, this loan aligns with Standard Bank's sustainability strategy and its commitment to supporting increased demand for greening initiatives in the real estate sector.
“South Africa's property sector presents immense growth potential and, with rising urbanisation, the demand for sustainable, resource-efficient developments has never been greater. This collaboration allows Standard Bank and its clients to meaningfully grow a more sustainable real estate landscape,” said Standard Bank Group deputy CEO and South Africa CEO Kenny Fihla.
Meanwhile, the IFC’s $250-million loan is accompanied by a performance-based incentive, which is funded by the United Kingdom represented by the Department for Energy Security and Net Zero, that Standard Bank would look to allocate to eligible developers and homeowners to rebate the green certification costs.
By leveraging blended finance solutions, such as the IFC Market Accelerator for Green Construction programme, which focuses on accelerating the construction of certified green buildings, Standard Bank will enable more real estate clients and home owners to incorporate green building standards, and benefit from lower utility bills, stable electricity supply, increased property value and potential access to cheaper funding.
Standard Bank's commitment to green financing is evident in its green home loans book, which has grown exponentially over the last two years. These green-certified homes meet stringent environmental standards, achieving significant energy and water consumption savings, the bank said.
Standard Bank hoped to further grow and entrench its position as a sustainable financier of choice in the residential property and home loan sector, it added.
“The IFC is pleased to expand the collaboration with Standard Bank, our longstanding partner in South Africa, to help widen access to finance for certified green buildings in South Africa,” said IFC Southern Africa regional director Cláudia Conceição.
“As we continue to champion innovative blended finance solutions to support high-impact segments in the real estate sector, such as affordable housing and women homeowners, the IFC is helping in their transition towards a more sustainable future and supporting the growth of a more inclusive and resilient economy.”
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation