Standard Bank signs new loan

A new $750 million sustainability-linked syndicated term loan has been signed by Standard Bank.

This is Standard Bank Group’s first sustainability-linked loan, coordinated by Bank of America, Mizuho, and SMBC Bank International. The loan’s margin is based on how Standard Bank performs in relation to three sustainability key performance indicators (KPIs).

The KPIs are in line with the Group’s sustainability policy and pertain to pledged financing of renewable energy power plants, social programmes in South Africa and across the continent, as well as staff diversity. Standard Bank has the opportunity to choose to extend the facility for an additional year. The facility is set up as a two-year loan.

Green and social loans and bonds, sustainability-linked loans and bonds, sustainable trade and working capital solutions, and impact investing are just a few of the financial services and products that Standard Bank is concentrating on offering through its sustainable finance division.

Speaking on the new loan, Kenny Fihla, Standard Bank’s Chief Executive for Corporate and Investment Banking noted that, “The transaction is fully aligned with the Group’s societal, economic and environmental (SEE) impact strategy and will result in positive impact across a number of the identified SEE impact areas – including climate change and sustainable finance.