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Key Points
- Absa secures a $300 million green syndicated loan, marking its first green deal and a South African banking milestone.
- Proceeds finance eligible green assets under Absa’s Sustainable Finance Issuance Framework, fostering a low-carbon economy.
- Absa partners with IFC on $50M trade finance for agriculture, reinforcing its commitment to Africa's sustainable growth.
Absa Group, a Johannesburg-based diversified financial services provider led by South African businessman Sello Moloko, has successfully secured a $300 million green syndicated term loan, marking a key milestone in the bank’s sustainability strategy and its efforts to foster a low-carbon economy across Africa.
The syndicated loan, Absa’s first, signals a significant step in the bank’s commitment to sustainable investments. The proceeds will be directed towards green assets in line with Absa’s Sustainable Finance Issuance Framework, reinforcing the bank's focus on environmental impact and the global push for a more sustainable future.
Strategic financing to drive low-carbon economy (LCE)
Arranged by SMBC Group and Standard Chartered Bank, Absa's debut green syndicated loan is the first of its kind for a South African bank. This replaces a December 2022 sustainability-linked facility, marking Absa's shift toward aligning its financing with global environmental goals.
The loan, with an initial two-year term and an extension option, is designed to finance and refinance green assets, as defined under Absa’s comprehensive sustainability framework. This initiative is integral to the bank’s broader Environmental, Social, and Governance (ESG) agenda, aimed at mitigating critical sustainability risks while advancing societal development and strong governance practices.
Absa targets $5.6 billion in sustainability
Absa, Absa, a pan-African financial services group, has expanded significantly under Chairman Sello Moloko since 2021. With over 12 million customers and a presence in 10 African countries, the bank continues to grow its footprint across the continent.
In March 2021, Absa became the first South African bank to set ambitious sustainability targets, committing to raise R100 billion ($5.6 billion) in sustainable finance by 2025. This initiative highlights the bank's leadership in sustainable finance across Africa.
Absa also partnered with the International Finance Corporation (IFC) in a $50 million trade finance project to boost agricultural exports in West and East Africa, further supporting the bank’s goal of driving sustainable growth across the region.
