Sustainable-Linked Funding Propels Barloworld Limited’s ESG Impact

Standard Bank, acting as the sole arranger and sustainability structuring agent, raised R1.1 billion in the South African debt capital market via a sustainability-linked bond offering. Standard Bank also raised R1 billion in the South African loan market via a sustainability-linked term loan and sustainability-linked revolving credit facility for JSE-listed industrials firm Barloworld Limited (Barloworld).

The bond offering, which was widely subscribed for by multiple investors and is the first sustainability-linked bond offering to list on the newly implemented Sustainability Segment of the JSE, will drive Barloworld on its journey to achieve greater environmental and social impact in its operations.

“As a committed enabler of responsible commerce in Africa, we are proud to partner with a leading South African diversified industrial group,” says Kaone Lekalake, Standard Bank Executive Client Coverage Industrials. “By leveraging our vast African footprint, expertise, and knowledge of key growth sectors, we are able to create unrivalled relationships that unlock opportunities and growth.”

“Standard Bank’s purpose is to drive Africa’s growth and we aim to do this in a sustainable and inclusive way. Delivering on this purpose isn’t just about how we strive to have a positive impact through our business operations, but also through our clients by understanding their unique needs and the challenges they face, to not only support their growth, but also help them to meet their environmental and social objectives,” says Melanie Elephant, Standard Bank Executive Corporate Financing Solutions.

The margin of both the bonds and loans are linked to Barloworld’s achievement of certain pre-agreed sustainability performance targets.

In Barloworld’s case, they have aligned sustainability performance targets to both environmental and social themes, with the aim to increase energy consumption from renewable energy sources, improve workplace safety and for the loans, drive diversity and inclusion.

Barloworld is an industrial processing, distribution, and services company with two primary areas of focus: industrial equipment and services, and consumer industries (food and ingredient solutions). Sustainable Development underpins its strategic framework, which ensures sustainability-related aspects are integrated as a strategic imperative.

As a responsible corporate, Barloworld has committed to balanced financial, natural, human, social, manufactured, and intellectual capital management and Barloworld’s sustainability framework defines the operating aspects in meeting these commitments.

Climate change and environmental considerations are central components of Barloworld’s Environmental Sustainability framework, which aligns directly with Standard Bank’s SEE (Social, Economic and Environmental) policy.

“This is yet another positive step in our long-term sustainability journey where we are committed to making a positive impact on the broader environment and societies in which we operate.” says Relebohile Malahleha, Barloworld Executive Strategic Finance and Treasury.