N$400M RAISED IN GREEN BOND ISSUANCE DEBUT
First issued in 2007, green bonds were created to exclusively finance project, assist or business activities that have positive environmental and / or climate benefits.
Standard Bank Namibia has emphasised its commitment to playing a key role in sustainable funding solutions in Namibia by successfully raising N$400 million of funding in the debt capital markets through green bond issuance, with Standard Bank of South Africa acting as joint arranger.
The inaugural green senior unsecured bond auction was held on 30 June 2022. According to Standard Bank Namibia Head of Treasury and Capital Management, Danie Rourke, the auction was well received, achieving a 2.41x oversubscription on issuance size, with the bulk of the bids within guidance and the spreads clearing at the lower end of price guidance. The proceeds of the green bond issuance will be used to finance and refinance, in whole or in part, eligible renewable energy projects in Namibia in accordance with the Standard Bank Group Sustainable Bond Framework. The use of proceeds aligns with Standard Bank Namibia’s SEE impact areas, namely Infrastructure, Climate Change and Sustainable Finance, and maps to the following United Nations Sustainable Development Goals: Affordable and Clean Energy (SDG7), Sustainable Cities and Communities (SDG11) and Climate Action (SDG13).
Standard Bank Namibia already disbursed funding for the first beneficiary focusing on renewable energy in June 2022. Qualifying projects must primarily focus on solar PV and wind farm, with or without battery storage. Projects that have a fossil fuel element of any kind are excluded.
The bank is committed to sustainability finance as it aligns with Standard Bank Namibia’s purpose of driving Namibia’s growth and is a strategic value driver for maximising positive social, economic and environmental (SEE) impacts of their business actives. This ground-breaking green bond issuance speaks to the bank’s commitment to address climate change and to support renewable energy projects in the Namibian economy.
Standard Bank Namibia also recently issued the country’s first green loan after entering into a multi-million-dollar funding agreement with an undisclosed company.
With the world drastically feeling the impacts of climate change – ranging from extreme weather, droughts and flooding to heat waves – the green angle enables a growing number of people and institutions, both locally and internationally, to help influence change and act to support climate change initiatives through investing. In a Namibian context, by investing in this bond, investors participate in renewable energy initiatives which are key pillars to growing the country’s economy and reaching its sustainable development goals by 2030.