- The bond is being offered under a framework in partnership with the AFD.
- The scheme will increase the bank’s green financing capacity by ten times.
The Development Bank of South Africa (DBSA) in its bid to increase finance for green projects has launched its first €200 million green bond. The loan is being launched in partnership with the French Development Agency (AFD). The bond will mobilize project financing for projects that will contribute to climate change mitigation in South Africa. DBSA expects that this scheme will increase its climate financing tenfold.
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According to the DBSA, “the bond will be structured in accordance with the bank’s recently published Green Bond Framework, which reiterates the bank’s commitment to play a role in the just transition to a low-carbon economy. The framework is aligned with the International Capital Markets Association (ICMA) Green Bond Principles.”
The bank through the Renewable Energy Independent Power Producer Procurement (REIPPP) programme finances renewable energy projects. . REIPPP, an initiative of the South African government aims to attract private investment in renewable energy. The DBSA is accredited with the Global Environment Facility (GEF) and the Green Climate Fund (GCF). The GCF provided the DBSA with US$56 million to finance climate projects in southern African countries earlier in 2019