(Ecofin Agency) - In a statement published December 6, 2018, Bank Windhoek announced that it issued NAD66.60 million ($4.74 million) of green bonds, thus becoming the first credit institution in Namibia and in southern Africa to issue such bond aimed at funding eco-friendly projects.

The bonds, which will be listed on the Namibia Stock Exchange, have a coupon equivalent to the three-month Johannesburg Interbank Average Rate inflated by 150 basis point.

Leading Namibian bank, Bank Windhoek is a subsidiary of Capricorn group, an investment bank with participation in the bank, insurance and asset management sectors in Namibia, Botswana and Zambia.  

"As a member of Capricorn Group, Bank Windhoek aims to become the Green Financier of choice for sustainability projects in Namibia and in other countries in which the Group operates", said Baronice Hans, the bank’s managing director.

Green bonds are a small segment of the debt market aimed at funding environmental, clean energy and mass transit projects as well as low-carbon projects that will contribute to the adaptation to climate change. Since their introduction in 2007, green bonds have mainly been issued by development institutions like the World Bank and the International Finance Corporation (IFC). Investors appreciate the liquidity and the fixed returns of green bonds as well as the positive impact they would have.