Montreal (Quebec), 17 July 2024 – Canada’s bilateral Development Finance Institution, FinDev Canada, announces a senior loan of US$ 100 million to FirstRand Bank Limited (FRB), the wholly-owned banking subsidiary of FirstRand Limited (FirstRand), Africa’s largest financial services group by market capitalization.
This loan will support FRB’s lending for green assets eligible under its sustainability bond framework, particularly to corporates and SMEs for renewable and energy-efficiency projects. The loan will also help finance projects which support climate resilience, climate change adaptation, green buildings, clean and sustainable transportation, smart agriculture and electricity distribution networks.
South Africa faces issues ranging from water scarcity to food insecurity and severe weather conditions, all of which are exacerbated by climate change. By strengthening access to climate finance, FRB is helping businesses of all sizes in South Africa make investments that contribute to climate mitigation and adaptation and strengthen overall resilience.
This will be FinDev Canada’s second transaction with FRB. The first loan was granted to assist the bank in providing innovative lending solutions to approximately 760,000 SME clients, specifically women-owned SMEs.
“Building on the success of our first transaction, we are delighted to work with FirstRand for a second time. This transaction demonstrates FinDev Canada’s commitment to working with dedicated partners to bring additional financing to a region of Africa where there are strong development needs”, Paulo Martelli, VP and Chief Investment Officer at FinDev Canada declares.
Bhulesh Singh, FirstRand Group Treasurer, said that the bank’s strategy to assist its clients transition to renewable energy solutions and achieve climate resilience was key to responding to the climate change challenges facing the African continent.
“This increased lending capacity from FinDev Canada for green assets – and the subsequent broader positive social impact this will have on the region - is an excellent outcome for FRB and the broader FirstRand group portfolio. It further cements this exciting relationship with FinDev Canada, given the alignment of our objectives.”
This transaction is FinDev Canada’s second investment to a financial sector entity solely dedicated to green finance. The first investment was in Ecuador to finance sustainable business practices contributing to the preservation of the oceans.
In addition, FRB will contribute to FinDev Canada’s long-term development impact goals and the SDGs, particularly SDG 8 (Decent Work and Economic Growth), SDG 13 (Climate Action), SDG 7 (Affordable and Clean Energy), and SDG 11 (Sustainable Cities and Communities).
About FinDev Canada
FinDev Canada is Canada’s bilateral Development Finance Institution (DFI), supporting development through the private sector. We provide financing, investment, and blended finance solutions, as well as technical assistance and knowledge, to promote sustainable and inclusive growth in emerging markets and developing economies (EMDEs), in alignment with the Sustainable Development Goals (SDGs) and Paris Agreement commitments. FinDev Canada is a wholly owned subsidiary of Export Development Canada (EDC). Find out more about FinDev Canada at www.findevcanada.ca.
About FirstRand
FirstRand Bank Limited (FRB) is a wholly owned subsidiary of FirstRand Limited, which is listed on the Johannesburg Stock Exchange (JSE) and Namibian Stock Exchange (NSX). The bank provides a comprehensive range of retail, commercial, corporate and investment banking services in South Africa and offers niche products in certain international markets. The bank has three major divisions which are separately branded: First National Bank (FNB), WesBank and Rand Merchant Bank (RMB). For more information, visit www.firstrand.co.za.
Media Contacts
FinDev Canada
Florence Reinson
Senior External Communications and Media Advisor
FirstRand
Sam Moss
Head: Investor Relations