Standard Bank supports TFG in linking its ZAR9 billion refinancing to measurable sustainability progress
12 Aug 2026
Country
South Africa
Year
2026
Sector
Retail
Business Unit
Corporate and Investment Banking
Specific Role
Co-Sustainability Coordinator (alongside RMB)
Standard Bank acting as Joint -Sustainability Coordinator alongside RMB, partnered with The Foschini Group (TFG) to structure a sustainability-linked loan overlay on TFG’s existing ZAR9 billion debt package. The underlying debt package was refinanced in March 2026, with the subsequent sustainability-linked overlay introducing sustainability performance features into the existing financing. This transaction supports TFG’s objective of aligning its existing financing arrangements with measurable sustainability priorities across responsible sourcing, supply chain transparency and local sourcing.
TFG is one of South Africa’s largest and most diversified retailers, with significant operations across the SADC region. Its scale, multi-brand structure and regional footprint make sustainability integration both critical and complex especially as TFG’s stakeholders require increased visibility on product traceability and transparency within the supply chain.
Our role focused on structuring a simple, practical and impactful sustainability-linked loan which deeply considered TFG’s real-world operating context. Working closely with TFG, we guided Key Performance Indicator (KPI) selection based on TFG’s BOLTs strategy and Inspire Living Framework which places material emphasis on ethical sourcing, responsible products, environmental stewardship and value-chain transparency. Ambitious corresponding sustainability performance targets were calibrated (for each KPI) through a rigorous historical and benchmarking analysis (where relevant). Against this backdrop, the transaction was structured to support priorities that TFG can influence through its direct commercial relationships, buying decisions, supplier engagement and private-label operating model.
The responsible sourcing KPI, focuses on the sourcing of sustainable cotton, as aligned to the Better Cotton Initiative (BCI). BCI aims to drive the uptake of certified cotton, ensuring systemic change in raw material sourcing and setting a precedent for aligning retail financing with sustainable agriculture and responsible product design. While the Supply Chain Mapping KPI increases transparency, addressing one of the most risk-prone parts of the apparel supply chain and creating accountability where environmental and social impacts are most concentrated. Together with the local sourcing KPI, which incentivizes regional manufacturing and socio-economic development, the KPIs create a holistic structure that advances environmental stewardship, supply chain accountability, and local empowerment, making this transaction a sector-defining innovation.
This transaction underscores Standard Bank's capability to structure and deliver tailored, impactful and scalable sustainable finance solutions that are dynamic and meet our clients needs as they evolve their businesses and sustainable finance strategies.
Frequently Asked Questions
What is a sustainability-linked loan (SLL)?
A sustainability-linked loan is a financing structure that links specific loan features to a borrower's performance against predefined sustainability targets. In this transaction, sustainability-linked features were introduced to TFG's existing debt package through a sustainability-linked loan overlay.
What sustainability priorities were included in TFG's sustainability-linked loan?
The sustainability-linked loan was structured around three key sustainability priorities: responsible sourcing, supply chain transparency and local sourcing. These areas were selected to align with TFG's sustainability strategy and reflect priorities that TFG can influence through its operations, supplier engagement and buying decisions.
What role did Standard Bank play in the transaction?
Standard Bank acted as Joint-Sustainability Coordinator alongside RMB. The bank worked with TFG to select appropriate key performance indicators (KPIs), calibrate sustainability performance targets using historical and benchmarking analysis, and structure the sustainability-linked loan framework.
Why were responsible sourcing, supply chain transparency and local sourcing selected as KPIs?
The selected KPIs reflect material sustainability themes within the retail sector and align with TFG's sustainability priorities. The framework includes sustainable cotton sourcing through the Better Cotton Initiative (BCI), increased visibility across apparel supply chains, and incentives that support regional manufacturing and socio-economic development.
Why is this transaction significant for sustainable finance in the retail sector?
The transaction links a large existing debt package to measurable sustainability outcomes while focusing on operational areas that TFG can directly influence. The structure combines environmental stewardship, supply chain accountability and local economic participation within a single sustainability-linked financing framework.