AfDB concludes $116m investment in Nedbank SDG-linked bonds

The African Development Bank has concluded an investment of ZAR2 billion (around $116 million) in Sustainable Development Goals-linked bonds issued by Nedbank South Africa. 

This SDG-linked Tier 2 bond issuance, the first of its kind in Africa, is expected to benefit the South African economy through the creation of over 6,000 new jobs and nearly 20,000 SME loans, in addition to catalyzing around R4 billion ($232 million) in additional investment in clean energy, which will help South Africa’s efforts to transit away from coal-generated power over the next ten years.

This investment, which is listed on the green bonds segment of the Johannesburg Stock Exchange, will strengthen Nedbank’s capital base and enable it to generate ZAR12 billion ($696 million) in new loans and investments in environmentally friendly and climate-sensitive projects in areas such as renewable energy and affordable housing.