• Investec secures $200 million IFC loan for green housing finance

• Funds to support eco-buildings, affordable green home loans in South Africa

• IFC to provide grants, technical support to expand sustainable finance portfolio

South Africa's Investec has secured a $200 million loan from the International Finance Corporation (IFC), the World Bank Group's private-sector arm announced on Wednesday, April 8.

The seven-year senior unsecured loan is intended to finance the expansion of Investec's certified EDGE green building finance portfolios, or equivalent certifications accepted by the IFC, as well as home loans in South Africa, the IFC said. The IFC's board approved the deal in December 2025, and it was signed on March 16. Disbursement of the funds is expected shortly.

The funds will support the expansion of Investec's green real estate lending, facilitating the construction of environmentally friendly buildings and the purchase of eco-conscious homes.

The project targets both property developers and individuals, with a focus on the affordable housing segment. Developers will be supported in building sustainable properties, while individual buyers will be assisted in purchasing green homes.

The IFC said the project is expected to facilitate access to climate finance in South Africa by supporting the financing of certified sustainable construction projects and green home loans, including in the affordable housing segment.

In addition to the loan, the IFC plans to provide grants of up to $3.8 million. These aim to reduce the cost of meeting green certification standards and will be allocated directly to developers and buyers to cover part of environmental certification expenses. The mechanism is designed to stimulate both the supply and demand for low-carbon buildings.

The project also includes technical assistance for Investec, focusing on strengthening green finance capacity, managing EDGE standards, and improving environmental and social risk management frameworks.

With this transaction, Investec, South Africa's fifth-largest bank by assets, is reinforcing its position in sustainable finance. The bank aims to contribute to reducing carbon emissions in the real estate sector while expanding its green lending offering. Looking ahead, Investec plans to scale up its activities in this area, targeting 18 billion pounds ($24 billion) in sustainable financing by 2030.

Sandrine Gaingne