43809 - Nedbank Green Loan

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Summary of Investment Information

Project Number

43809

Company Name

NEDBANK LTD

Date SPI Disclosed

Aug 14, 2020

Country

South Africa

Region

Africa

Projected Board Date

Sep 15, 2020

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Jun 18, 2024

Department

Regional Industry - FIG Africa

Industry

Financial Markets

Previous Events

Approved : Sep 22, 2020
Signed : Dec 15, 2020
Invested : Mar 15, 2021

Sector

Commercial Banking - General

Project Description

The proposed investment (the “Project”) consists of a senior loan of up to US$200 million to Nedbank Ltd (“Nedbank” or the “Bank”). The Project will help to further develop Nedbank’s climate finance platform to on-lend to renewable energy (“RE”) projects and contribute to expanding the Bank’s climate strategy through Equator Principle compliance projects.

Associated Advisory Engagement

None.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	200.0
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Straight Senior Loan	Climate (not covered in any category)

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

The most significant, expected project-level effect is increased access to climate finance in South Africa. Beyond the Project, IFC anticipates that through demonstration and capacity building, Nedbank's planned development of a climate risk assessment framework and disclosure initiatives, will contribute towards the increased resilience of the South African banking sector to climate-related risks.

E&S Category Rationale / Risks and Mitigation

The Project has been categorized as Category FI-2 according to IFC’s Environmental and Social Sustainability Policy. The proposed investment entails a senior loan to Nedbank to finance eligible green investments. Nedbank provides retail, SME, and corporate banking services to clients in South Africa. The Project portfolio is expected to include renewable energy projects. High risk projects will be excluded from the Project portfolio. As such, the portfolio supported under the senior loan is expected to comprise business activities with limited adverse environmental and social risks or impacts that are few in number, generally site-specific, largely reversible and readily addressable through mitigation measures. As part of the project, Nedbank will be required to screen all transactions supported under this Project against the IFC Exclusion List, national E&S laws and regulations in South Africa, and the IFC Performance Standards. Under this Project, Nedbank will not finance projects that may include: a) involuntary resettlement, b) risk of adverse impacts on Indigenous Peoples, c) significant risks to or impacts on environment, community health and safety, biodiversity, cultural heritage, or d) significant Occupational Health and Safety risks. In addition, transactions involving coal mining, coal-related activities and upstream oil and gas activities will be excluded from financing.

IFC will periodically disclose the names, locations and sectors for Category A and/or other qualifying sub-projects that have been supported by this IFC investment through financial intermediaries, subject to regulatory constraints and market sensitivities. Any qualifying sub-project(s) will be disclosed during the annual reporting cycle established with the client. The sub-projects listed below reflect the status of the portfolio as of June 2024.

Sub-project	Industry/Sector	Location
Amstilinx (RF) (Pty) Ltd	Renewable Energy (Power Generation)	Located near the town of Swellendam in the Western Cape, South Africa
Main Street 957	Renewable Energy (Power Generation)	Located approximately 5km east of the town of Aggeneys in the Northern Cape Province, South Africa
Ngodwana Energy (RF) (Pty) Ltd	Renewable Energy (Power Generation)	Located in Mpumalanga near Mbombela

The main E&S risks and impacts of this project relate to the ability of Nedbank to identify and manage the potential E&S risks and impacts associated with the green portfolio, as well as the bank’s labor practices. The E&S risks and impacts associated with the green assets supported under the Project are typically medium environmental and social risks such as labor and working conditions, occupational health and safety, waste management, pollution prevention, and limited adverse impacts on biodiversity. Nedbank has an E&S team and an E&S management system (ESMS) for identifying and managing the potential E&S risks and impacts associated with its lending activities for certain sectors and financial products. The E&S risk management procedures include screening against the IFC Exclusion List, applicable national environmental and social laws, and the IFC Performance Standards. In addition, Nedbank applies the Equator Principles to project finance transactions. The Bank’s E&S risk management procedures require assessing applicable transactions to identify E&S risks and impacts, the development of E&S action plans to manage compliance gaps and monitoring the ongoing performance of clients. Nedbank will be required to continue implementing the current E&S risk management procedures for this Project. In relation to labor standards, Nedbank’s human resources policies are generally in line with the requirements of IFC Performance Standard 2 on Labor and Working Conditions.

Contacts

For Inquiries About the Project, Contact

Nedbank Limited
Arvana Singh
Principal: Debt Origination
+27 10 234 8708
arvanas@nedbank.co.za
4th Floor, Block F, 135 Rivonia Campus, 135 Rivonia Road, Sandown, Sandton, 2196, South Africa
www.nedbank.co.za

For Inquiries and Comments About IFC, Contact

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Summary of Investment Information

Project Description

Associated Advisory Engagement

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation

Similar Projects

Contacts

Projects

Summary of Investment Information

Project Description

Associated Advisory Engagement

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

IFC's Investment as Approved by the Board

FIG Use of Proceeds/Beneficiaries

Location of Project and Description of Site

Development Impact

Anticipated Impact Measurement & Monitoring (AIMM) Assessment

IFC's Role and Additionality

E&S Category Rationale / Risks and Mitigation

Environmental & Social Categorization Rationale / Key Risks & Potential Impacts

Financial Intermediary Sub-Project Disclosure

Environmental & Social Management System (ESMS)

Mitigation Measures / Environmental & Social Action Plan (ESAP)

Press-Release

Related Environmental Document

Similar Projects

Contacts

Information on E&S Complaints and Grievance Mechanisms

Disclaimer