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South Africa’s DBSA launches green
bond to fund low-carbon economy
SOUTH AFRICA THE Development Bank of South Africa including the Climate Finance Facility (CFF),
(DBSA) has announced the launch of its first a lending facility set up to encourage private
green bond, a €200mn offering issued through sector investment in climate related projects in
a private placement with the French develop- Southern Africa and the Embedded Generation
ment finance institution, the Agence Française Investment Programme (EGIP), a facility to sup-
de Développement (AFD). port embedded generation renewable energy
The bond will be structured in alignment projects in South Africa.
with the Bank’s recently released Green Bond The DBSA is also an active member of the
Framework, which reiterates the DBSA’s com- International Development Finance Club
mitment to playing a role in the just transition (IDFC), a network of national, regional and
to a low-carbon economy. The Framework is multilateral development banks and finance
aligned with the International Capital Market institutions that promotes and leverages sustain-
Association (ICMA) Green Bond Principles. able development investment in support of the
In recent years, the DBSA has become an Sustainable Development Goals (SDGs) and the
increasingly important player in climate finance. Paris Agreement.
The Bank was instrumental in the development The DBSA green bond issuance will be
of the Renewable Energy Independent Power applied to projects that contribute to climate
Producers Programme (REIPPP) and is accred- mitigation and /or adaptation, that are aligned
ited to the Global Environment Facility (GEF) to South Africa’s National Development Plan
and the Green Climate Fund (GCF). (NDP) objective of an “environmentally sus-
In partnership with the GCF, the DBSA has tainable and equitable transition to a low-carbon
implemented large-scale programmes which economy” and that are aligned with the Sustain-
support the transition to a low-carbon economy, able Development Goals.
Week 06 11•February•2021 www. NEWSBASE .com P7
