The African Development Bank Group has invested around USD 116 million in Sustainable Development Goals-linked bonds (SDG bonds) issued by Nedbank South Africa.

This investment is listed on the green bonds segment of the Johannesburg Stock Exchange and will strengthen Nedbank’s capital base and will enable it to disburse USD 696 million of new loans and invest in environment-friendly and climate-sensitive projects in areas such as renewable energy and affordable housing. This SDG-linked Tier 2 bond issuance is expected to benefit the South African economy through the creation of over 6,000 new jobs and nearly 20,000 small and medium enterprise (SME) loans. It is also expected to catalyze around USD 232 million in additional investment in clean energy, which will help South Africa’s transition from coal-generated power to clean energy over the next 10 years.

The development is in line with the African Development Bank’s Ten-Year Strategy 2013-2022, which emphasizes on green and inclusive growth. It is also in line with the bank’s High 5 priorities, which are: Light up and Power Africa, Feed Africa, Industrialize Africa, Integrate Africa, and Improve the lives of African people. Commenting on the development, Stefan Nalletamby, the African Development Bank’s Director for the Financial Sector Department said, “We are very pleased to be able to support the South African economy by injecting investment into the private sector through a responsible and trusted partner who is committed to responsible investing. This investment will help accelerate the recovery of the economy after the slowdown caused by the Covid-19 pandemic.”