(Ecofin Agency) - South African Absa Bank, former subsidiary of British Barclays Bank, is about to obtain up to $150 million in loan from the International Finance Corporation to support green projects. ICF says this is Africa's first certified green loan.
"Africa's green transition requires considerable mobilization of funds [...] The agreement with IFC bolsters our funding available for green projects and strengthens Absa's position as a leader in financing renewable projects in South Africa," said Jason Quinn, Absa Interim MD.
Beyond the financing, IFC will provide the beneficiary with technical assistance and share its expertise on green bonds and loans. Absa wants to increase its financing in projects targeting biomass and renewable energy.
The operation is IFC's fourth green finance investment in the South African banking sector. The lender estimates that there is a $588 billion investment opportunity for climate change mitigation in South Africa by 2030. Commercial banks, which already provide 67% of such financing in the country, are best positioned to seize this opportunity.