The first social bonds for three- and five-year periods were successfully settled at a total of R700m, with more than R1bn in bids received on the day.
African Bank's alignment of its financial strategy with its environmental and social goals and its core purpose of advancing lives - enables the Bank to raise capital through Green, Social, and Sustainability (GSS) bonds and loans, supporting projects that deliver measurable environmental and social impact.
Under its transformative business strategy, African Bank has evolved into a diversified, retail and business bank. This evolution is progressing with the launch of this inaugural listed social bond under this Framework, embedding sustainability into the Bank’s DNA and aligning with key United Nations Sustainable Development Goals (SDGs), including climate action, gender equality, and financial inclusion.
“This framework to raise money for social and environmental initiatives is more than a financial tool; it’s a commitment to responsible banking, inclusive growth, and environmental stewardship,” said Edna Sathekga-Montse, the group chief transformation and sustainability officer at African Bank.
“Our sustainability strategy is holistic, addressing internal operations, stakeholder relationships, community impact, and environmental sustainability - all of which are crucial for long-term success in South Africa, for our customers and the communities in which we operate.”
The framework outlines eligible criteria for small- and medium enterprise financing and will in future enable financing for green and social projects, including renewable energy. It includes robust governance, risk management, and reporting mechanisms to ensure transparency and accountability.
African Bank will publish the annual Allocation and Impact Reports and obtain independent verification to ensure the effective use of proceeds. The framework was approved by the JSE and has received a Second Party Opinion, confirming alignment with international best practices.
“This step cements our commitment to inclusive growth in South Africa. We are not just talking; we want to demonstrate how we drive positive change, through our audacious actions to empower individuals in pursuing their aspirations.
"It positions African Bank as a catalyst for change in communities across South Africa that are facing challenges,” concludes Montse.
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