- USD 300 million syndicated facility to scale renewable energy and climate resilience finance in South Africa.
- DEG acts as sole arranger and agent alongside FMO and Proparco.
- Facility supports South Africa Just Energy Transition and EU South Africa investment cooperation.
The German development finance institution DEG has led a consortium of European partners to provide a USD 300 million syndicated loan facility to FirstRand Bank in South Africa, marking a major boost for climate adaptation, resilience and renewable energy finance in the country.
The facility has been arranged in partnership with Dutch development bank FMO and French development finance institution Proparco. DEG acts as sole arranger, agent and one of the lenders. The funding will support the expansion of renewable energy financing in South Africa, contribute to the country Just Energy Transition and strengthen support for German businesses operating in the local market.
The transaction builds on a long standing relationship between DEG and FirstRand, encompassing advisory services and financing linked to climate resilience, biodiversity and the sustainable energy transition. It is the largest syndicated facility arranged solely by DEG and ranks among the largest loans provided to FirstRand to date.
FirstRand, one of Africa largest financial institutions, has publicly committed to mobilising ZAR 450 billion in sustainable and transition finance by 2030. To date, ZAR 200 billion has already been deployed across a range of climate and sustainability focused initiatives.
The facility also reinforces the role of the Friendship Facility, established in 2011 by DEG, FMO and Proparco to deliver impact driven finance at scale. The latest transaction highlights the depth of cooperation between European development finance institutions and South Africa financial sector, as well as the strength of EU South Africa development and investment collaboration.
Commenting on the transaction, Monika Beck, Chief Investment Officer at DEG, said the deal reflects a shared commitment to impact and climate outcomes. She noted that FirstRand has been a trusted partner for nearly two decades and that the facility will support inclusive and resilient growth in South Africa.
FirstRand Group Treasurer Bhulesh Singh said climate resilience is a critical priority for South Africa as it addresses poverty, food security risks linked to drought and the sustainable delivery of essential services. He welcomed the continued partnership with DEG, FMO and Proparco to strengthen financing capacity in this vital sector.
Huib Jan de Ruijter, Co CIO at FMO, said the transaction reaffirms the partners shared ambition to advance climate resilience and sustainable development through collaboration with strong local financial institutions.
Johann Choux, Regional Director at Proparco, added that the facility reflects the depth of the longstanding relationship with FirstRand and the shared objective of mobilising long term capital to support climate action and resilient economic growth in South Africa.
Author: Bryan Groenendaal
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