Nedbank Issues First Climate Bonds Certified Green Bond in South Africa

  • Nedbank Limited has become the first private sector institution in South Africa to issue a Climate Bonds Certified Renewable Energy Bond pioneering the way for other private sector players in the local market. 
  • The proceeds of this Renewable Energy Bond will be applied towards the construction of four new renewable energy projects located in South Africa (3 solar projects and 1 wind project).
  • The new bond was significantly oversubscribed.

The Renewable Energy Bonds were auctioned on 24th April 2019, attracting bids of ZAR5.4bn. Targeting an issuance size of ZAR1bn with an option to upsize, Nedbank issued ZAR1.66bn to accommodate all investor bids at the clearing levels thus demonstrating significant demand for the Renewable Energy Bond with an oversubscription of 3.28 times.

Pricing expectations, supported by the significant oversubscription, also exceeded with the notes pricing mid guidance in the 3-year space and at the tighter end of guidance in the 5 and 7-year space.

The proceeds of this Renewable Energy Bond will be applied towards the construction of four new renewable energy projects located in South Africa (3 solar projects and 1 wind project), thereby bringing additional cleaner renewable energy sources to the global energy mix and reducing C02 emissions to the environment.

“With this Certified green bond, Nedbank are taking a leadership role on green finance in South Africa. Building climate-based and sustainable investment markets to help nations achieve their NDC targets requires financial institutions – banks, insurers and pension funds to step up. Nedbank have done just that. Congratulations,” said Sean Kidney, CEO, Climate Bonds Initiative.

Author: Bryan Groenendaal

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