Standard Bank of South Africa Limited (SBSA) is excited to announce the successful closing of a $250 million seven-year unsecured loan from the International Finance Corporation (IFC). This significant funding will enhance Standard Bank’s initiatives aimed at promoting sustainable development through green financing.
The allocated funds will primarily support green buildings and green home loans, facilitating expanded access to financing for sustainable construction. This initiative is designed to assist developers in overcoming the initial cost barriers associated with sustainable building practices and certification, while also providing end consumers with the financial means to acquire eco-friendly homes. Through this facility, Standard Bank will offer customized financial solutions to real estate developers and homebuyers, ensuring alignment with global best practices in green construction.
The loan will specifically support greenfield projects across various sub-sectors, including industrial, retail, and residential, with a particular emphasis on affordable housing within the residential segment. This funding aligns perfectly with Standard Bank’s sustainability strategy and its commitment to meeting the growing demand for green initiatives in the real estate sector.
Kenny Fihla, Deputy Chief Executive Officer of Standard Bank Group and Chief Executive Officer of South Africa, stated;
The property sector in South Africa holds tremendous growth potential. With increasing urbanization, the demand for sustainable and resource-efficient developments has reached unprecedented levels. This collaboration enables Standard Bank and its clients to significantly contribute to the creation of a more sustainable real estate landscape.
In addition to the $250 million loan, the IFC has introduced a performance-based incentive funded by the United Kingdom’s Department for Energy Security and Net Zero. This incentive will be allocated to eligible developers and homeowners to help offset the costs associated with green certification. By utilizing blended finance solutions, such as the IFC’s Market Accelerator for Green Construction (MAGC) program, which aims to expedite the construction of certified green buildings, Standard Bank will empower more real estate clients and homeowners to adopt green building standards. This transition will yield benefits such as reduced utility bills, stable electricity supply, increased property values, and potential access to more affordable financing.
Cláudia Conceição, IFC’s regional director for Southern Africa, remarked;
IFC is delighted to expand its collaboration with Standard Bank, our long-standing partner in South Africa, to enhance access to finance for certified green buildings. As we continue to promote innovative blended finance solutions that support high-impact segments in the real estate sector, including affordable housing and women homeowners, IFC is playing a crucial role in facilitating their transition towards a more sustainable future and fostering the growth of a more inclusive and resilient economy.
As a leader in the residential home loan sector in South Africa, Standard Bank aims to further solidify its position as the preferred sustainable financier in the residential property and home loan market. The bank’s commitment to green financing is reflected in the substantial growth of its green home loans portfolio over the past two years. These green-certified homes adhere to rigorous environmental standards, resulting in significant savings in energy and water consumption. Standard Bank remains dedicated to driving sustainable development and creating long-term value for its stakeholders.
