Nedbank has extended a €19.4m (R395m) sustainability-linked loan to Kasada, a private equity platform focused on hospitality in Africa.
This as the bank, under the leadership of CEO Jason Quinn, looks to flex its muscle on the rest of the continent after years of depending on its home market for earnings.
The lender said the sustainability-linked loan secured by Kasada will fund the Mövenpick Resort Lamantin Saly in Senegal, reinforcing its commitment to sustainable real estate development across Africa’s hospitality sector and building on its position as the continent’s leading commercial property financier.
“This transaction highlights our ability to deliver strategic financial support that is tailored to local market dynamics. By working closely with our clients, we structure long-term investment solutions that align with their business objectives and the broader development goals of the region,” said Catherine Hendry, executive for property finance Africa at Nedbank corporate and investment banking.
Ram Lokan, MD at Kasada, said the facility marks the company’s first sustainable finance transaction.
“This financing enables us to further connect our investment in sustainability initiatives to our fundraising efforts and deliver impact in the communities where we operate. We are proud to be the leaders in sustainable hospitality development, which helps us drive growth while ensuring environmental stewardship,” he said.
Nedbank still derives much of its revenue from SA. According to the group’s annual report, the company’s SA franchise contributed 90% of the group’s R1.4-trillion of assets and 79% of R16.9bn headline earnings in financial year 2024.
The group operates in six countries in the Southern African Development Community through subsidiaries and banks in Lesotho, Mozambique, Namibia, Eswatini and Zimbabwe. It has a representative office in Kenya, East Africa’s economic powerhouse.
The bank plans to leverage its strengths in corporate and investment banking to expand into East Africa and grow its deposit market share, with a focus on transactional deposits amid expansion of transactional banking franchises across retail, commercial and corporate. /With Kabelo Khumalo
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