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Bank Windhoek issued US$16.72 million worth of sustainable debt.
- The country had issued its first green bond in 2020.
- The funds raised will be used to finance sustainable and social projects.
Bank Windhoek has successfully issued and listed Namibia’s first Sustainability Bond on 2 June 2021. The bank raised N$227 million (US$16.72 million) via the Sustainability Bond on a private placement basis. The proceeds will be used to finance/refinance green and social projects. Projects will be benchmarked and must align with the four core components of the International Capital Market Association’s (ICMA) Green Bond Principles (GBP), Social Bond Principles (SBP), and follow the ICMA sustainability bond guidelines.
Projects eligible for the funds include renewable energy, energy efficiency, green buildings, sustainable waste management, sustainable agriculture and tourism, and investments into quality, accessible and innovative healthcare and education projects. Bank Windhoek will evaluate social projects based on their primary objectives and proposed impacts.
Bank Windhoek’s Managing Director, Baronice Hans, noted that green and sustainable bonds enable consumers to complete the value chain, create a complete value chain.” In addition, sustainability bonds promote positive change in society and the environment and provide investors with a means of aligning their asset allocations with sustainability objectives in a meaningful way,” Chief Treasurer Claire Hobbs added.
In 2020, about US$415 billion worth of sustainable debt was issued globally, a 60 per cent increase from 2019.