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The intention is that the sustainability-linked loan and the social bond investment will be in the form of qualifying capital for Absa[1]. Finalisation of the financial package is subject to the conclusion of relevant legal processes. The funding will enable Absa to further expand its strategic business lending activities within the social, and sustainable financing segment.
The financing will boost Absa’s program to scale up and grow its loan book in sustainable lending activities within the small and medium sized enterprises (SMEs) segment, including for women and youth owned/ led enterprises, as well as to support increased provision of long-term affordable housing mortgage financing for female borrowers in South Africa. Absa Group Limited is one of Africa’s largest diversified banking groups with operations in more than 12 African countries, and a strategic partner of the African Development Bank.
Absa will deploy the trade financing facility to promote access to trade financing for enterprises and increased trade facilitation for the continent, including for African low-income countries and Transition States in line with the African Development Bank’s priorities for improving trade finance access to the continent as well as promoting intra-Africa trade.
Leila Mokaddem, Director General of the African Development Bank’s Southern Africa Region said the financing marked a continuation of the institution’s long-standing partnership with Absa.
“This comprehensive financing package will unlock financing including for youth and female entrepreneurs in South Africa, as well as for underserved female borrowers in the affordable housing sub-sector in South Africa,” she noted. “This is aligned with our priorities to promote entrepreneurship and job creation, especially for youth and women and improve quality of life for the people of Africa”.
Commending Absa on the continued operationalization of its Sustainable Finance Issuance Framework and commitment to sustainability, Ahmed Attout, the African Development Bank’s Acting Director for the Financial Sector Development Department, said the collaboration further demonstrated the Bank’s commitment to strategically drive innovation and to mobilize and channel funding including through debt capital markets towards key sectors and segments of the economy.
“We are pleased to see the agreement coming to fruition, enabling Absa to increase sustainable lending, launch our first social bond and enhance our work in closing the trade financing gap that currently exists in Africa. The financial close of this agreement will support our ambition to be an active force for good and strengthens our relationship with African Development Bank,” said Parin Gokaldas, Absa Group Treasurer.
Distributed by APO Group on behalf of African Development Bank Group (AfDB).
Media contact:
Amba Mpoke-Bigg
Communication and External Relations Department
email: media@afdb.org
Technical Contacts:
Bleming Nekati
Private Sector Operations
African Development Bank
Peter Onyango
Financial Sector Development Department
African Development Bank
About the African Development Bank Group:
The African Development Bank Group (AfDB) is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 37 African countries with an external office in Japan, the AfDB contributes to the economic development and the social progress of its 54 regional member states. For more information: www.AfDB.org
About Absa Group Limited:
Absa Group Limited (‘Absa Group’) is listed on the Johannesburg Stock Exchange and is one of Africa’s largest diversified financial services groups.
Absa Group offers an integrated set of products and services across personal and business banking, corporate and investment banking, wealth and investment management and insurance.
Absa Group owns majority stakes in banks in Botswana, Ghana, Kenya, Mauritius, Mozambique, Seychelles, South Africa, Tanzania (Absa Bank Tanzania and National Bank of Commerce), Uganda and Zambia and has insurance operations in Botswana, Kenya, Mozambique, South Africa and Zambia. Absa also has representative offices in Namibia and Nigeria, and securities entities in the United Kingdom and the United States.
For further information about Absa Group Limited, visit www.Absa.Africa
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