Standard Bank arranges African Bank's R700m Social Bond issuance for SME impact

Developing a robust Sustainable Finance Framework and issuing a Social Bond requires deep expertise in sustainable finance principles and market dynamics. African Bank sought a financial partner capable of guiding them through this complex process, ensuring alignment with their sustainability strategy and facilitating a successful market entry. This initiative was crucial for channelling capital towards impactful social projects, particularly within the micro, small and medium enterprise (MSME) segment, a key driver of economic growth and job creation in South Africa.

Standard Bank stepped forward as the Sole Lead Arranger and Sustainability Coordinator, providing comprehensive support in developing African Bank's Sustainable Finance Framework, which received a Second Party Opinion from Ibis Consulting (trading as SLR). 

“This framework to raise money for social and environmental initiatives is more than a financial tool; it’s a commitment to responsible banking, inclusive growth, and environmental stewardship,” said African Bank’s Group Chief Transformation and Sustainability Officer, Edna Sathekga-Montse. “Our sustainability strategy is holistic, addressing internal operations, stakeholder relationships, community impact, and environmental sustainability. All of which are crucial for long-term success in South Africa, for our customers and the communities where we operate.”

Standard Bank’s arranging capabilities and profound understanding of investor demand were instrumental in advising African Bank on the optimal issuance strategy. This led to a well-oversubscribed bond, with pricing clearing tighter than recent levels and attracting new investors. This inaugural Social Bond issuance, listed on the JSE Sustainability Segment, directly supports African Bank’s strategy for financial inclusion. 

This landmark transaction underscores our commitment to driving financial inclusion and supporting the vital MSME sector in South Africa. It highlights our extensive sustainable finance expertise, ensuring the framework's alignment with African Bank's sustainability objectives and contributing to their long-term impact goals. We are proud to be the trusted partner for pioneering sustainable finance solutions, reinforcing our leadership in innovative investment banking and championing inclusive growth across Africa.

“This step cements our commitment to inclusive growth in South Africa. We are not just talking; we want to demonstrate how we drive positive change, through our audacious actions to empower individuals in pursuing their aspirations. It positions African Bank as a catalyst for change in communities across South Africa that are facing challenges,” concludes Montse.