Standard Bank, Africa’s largest bank by assets, has secured $300m in funding for green projects from the International Finance Corporation (IFC).
The “Big Blue”, as the lender is referred to in financial services circles due to the size of its balance sheet, on Tuesday said the facility would be allocated to a “portfolio of green and social assets”.
“The successful conclusion of this $300m sustainable loan provides financial resources to enable the bank to continue supporting our customers on their social and environmental journeys. We are delighted to partner with the IFC and drive positive impact across the continent,” Standard Bank’s corporate and investment banking (CIB) head Kenny Fihla said.
Standard Bank has already said it will not finance new coal-fired power plants beyond 2050.
The bank a year ago said it was looking to use the “largest balance sheet in Africa” to drive SA’s and the continent’s just transition, and it committed billions of rand to be the leading financier of green energy deals.
The lender said $1.4-trillion in capital investment is required by 2030 to support Africa’s energy transition goals. It said it mobilised R54.5bn in sustainable finance solutions in financial year 2022, including R18.5bn to finance renewable energy power plants.
Standard Bank’s CIB unit is key to the group’s fortunes, serving large companies, multinationals, governments, parastatals and institutional clients across Africa and internationally.
CIB generated corporate total income of R48.8bn for the group in its last financial year.
The business has positioned itself to play a leading role in financing just transition projects across the 20 territories where it does business in Africa, including its SA home market.
Financing sustainable energy infrastructure is the fastest-growing part of the group’s CIB business, and it expects to have achieved at least R250bn in sustainable finance origination by 2026.
In the group’s 2022 annual report published in 2023, Fihla said financing renewable energy projects is the unit’s biggest growth opportunity.
Adamou Labara, IFC country manager for SA, said: “Our partnership with Standard Bank is a testament to our shared vision of a sustainable future and our dedication to advancing economic growth in the country.”
Standard Bank’s asset management firm, Stanlib, recently launched the Khanyisa Energy Transition Fund, which is meant to mobilise capital — initially to finance SA’s energy transition needs and later those of the rest of the continent. The fund has seed capital of R3bn from Standard Bank and its Liberty subsidiary.
Fihla has been handed more power at Standard Bank in a serious vote of confidence in his leadership acumen, putting him in the pound seats to succeed group CEO Sim Tshabalala.
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