(Ecofin Agency) - The International Finance Corporation (IFC) is considering a financing proposal of up to $150 million for Absa Bank, South Africa's third-largest bank by assets.

The money will serve for green investments and will be used to finance projects and companies that have a positive impact on the environment and the climate. Particular focus will be on renewable energy and biomass projects. The expected senior loan will have a maturity of three years.

If the financing is approved, Absa Bank, wholly owned by the financial services group Absa Group Limited, will become one of the few South African financial institutions to obtain a green loan. The financial institution has already expressed its intention to further develop its climate finance activities over the next few years.

JSE-listed Absa Bank has already supported several initiatives and projects related to the preservation of the environment and the development of sustainable energy sources in South Africa. In September 2019, it committed to aligning its activities with sustainable development goals by becoming a signatory to the Principles for Responsible Banking.

Chamberline MOKO