FirstRand Bank

Press release

July 17, 2024

FinDev Canada announces US$ 100M commitment to FirstRand Bank to support climate finance in Sub-Saharan Africa

Press Release

Montreal (Quebec), 17 July 2024 – Canada’s bilateral Development Finance Institution, FinDev Canada, announces a senior loan of US$ 100 million to FirstRand Bank Limited (FRB), the wholly-owned banking subsidiary of FirstRand Limited (FirstRand), Africa’s largest financial services group by market capitalization.

Summary of Anticipated Development Impacts

MARKET DEVELOPMENT

Increase access to finance for green projects: This transaction aims to support FirstRand Bank’s strategic plan to facilitate R200 billion2 in sustainable and transition finance in the South African economy by 2026. FinDev Canada’s loan proceeds will contribute to increased access to finance by businesses and/or residences seeking to fund eligible green projects as defined in FirstRand Bank’s sustainability bond framework.

Climate and Nature Action

FirstRand Bank is decreasing its lending into fossil fuel sectors and is actively engaging with top polluting clients to define GHG emissions reduction targets. FinDev Canada’s proceeds will support FirstRand Bank’s commitment to achieve net zero finance

CLIMATE AND NATURE ACTION

Support the transition to a low‑carbon economy: It is expected that proceeds from this transaction will be channeled towards renewable energy projects, green housing projects (e.g., solar home solutions projects and eco‑energy homes), and green buildings and other eligible assets in terms of FirstRand Bank’s sustainability bond framework. This is anticipated to increase renewable energy generation capacity and to improve the resource‑use efficiency of commercial and residential buildings, ultimately contributing to the transition to a low‑carbon economy.
Reduce or avoid GHG emissions: FirstRand Bank’s sustainable and transition finance activities have generated an impact track record that includes the installation of 376 MW of renewable energy capacity and the certification of 54 green buildings with a minimum of 20% efficiency in energy and water consumption as at 30 June 2023. FirstRand Bank is decreasing its lending into fossil fuel sectors and is actively engaging with top polluting clients to define GHG emissions reduction targets. FinDev Canada’s proceeds will support FirstRand Bank’s commitment to achieve net zero financed emissions by 2050.