Driving South Africa’s Energy Shift and Social Impact

These transactions marked a significant step in mobilising capital for projects that advance South Africa’s transition to a more inclusive, low-carbon economy.

The IDC’s Sustainable Bond Framework, developed with the Bank’s guidance aligns with the International Capital Market Association’s (ICMA) Green Bond Principles, Social Bond Principles, and Sustainability Bond Guidelines. Independent verification from ISS confirmed the framework’s credibility and its alignment with global best practice, giving investors’ confidence in the bond’s environmental and social impact.

The March auction was 2.3x oversubscribed with an orderbook of R3.46 billion, surpassing the R1.5 billion target and settling at R2 billion. The International Finance Corporation (IFC) anchored the deal with over R1 billion, while bonds were issued across 5-, 7-, 10- and 12-year tenors. The latter, the longest maturity yet seen in South Africa’s sustainable bond market. Investor appetite also allowed IDC to compress its funding curve by 10–15 basis points compared to its November 2024 auction.

The funds raised, totalling R3.4 billion and listed on the JSE Sustainability Segment will be channelled into renewable energy, energy efficiency, sustainable water management, clean transport, socio-economic advancement and SMME financing. In the energy sector, this includes initiatives that support grid decarbonisation and the growth of independent power producers, both critical to strengthening South Africa’s energy security and reducing reliance on carbon-intensive generation.

While the transaction attracted strong investor interest and achieved several market firsts, the greater significance lies in how it connects capital to impact. By structuring funding in a way that meets investor demand for environmental, social and governance (ESG) investment opportunities, we are enabling projects that will have a lasting positive impact.

This deal is a tangible example of how innovative financing can unlock growth, create jobs, and enable a just energy transition.

This is not Standard Bank’s first step in financing transformative energy projects. We have proven track record of enabling large-scale renewable energy developments. These include landmark wind and solar projects that have set new benchmarks for South Africa’s clean energy capacity.

In recent years, we’ve played a key role in structuring complex transactions for multi-offtaker wind farms and utility-scale renewable projects, working with both public and private sector partners to deliver long-term, sustainable power solutions. These deals demonstrate the bank’s ability to navigate the evolving energy market, attract global investment, and create funding models that accelerate the country’s just energy transition.

As Africa’s largest bank, we remain committed to working with strategic partners like the IDC to deliver innovative funding solutions that advance industrialisation, promote localisation, and drive Africa’s sustainable growth.