FirstRand Bank has published its 2024 green bond allocation and impact report, dated 11 October 2024, showing that about half of the R3.5 billion it raised through two green bonds in October 2023 had been allocated to eligible projects as at 30 June 2024.
The South African lender issued the bonds on 12 October 2023: FRJ28G, a R1.714 billion five-year green bond, and FRJ30G, a R1.798 billion seven-year green bond. Both were issued under the FirstRand sustainability bond framework. At 30 June 2024, the first post-issuance reporting date, R891.7 million had been allocated against each bond, equivalent to 52% of FRJ28G proceeds and 50% of FRJ30G proceeds.
RENEWABLES AND GREEN BUILDINGS
Renewable energy project finance accounted for the largest share of allocations, with R694.1 million across two projects, equal to 41% of FRJ28G and 39% of FRJ30G. A further R156.0 million went to asset-based solar finance across 211 assets, and R41.6 million to 40 ecoEnergy home loans for green buildings certified under the IFC’s EDGE standard.
FirstRand reported that the project finance allocations supported 118 MW of installed renewable capacity, with potential greenhouse gas emissions reduction or avoidance of 312,090 tonnes of CO2 equivalent a year. The asset-based solar finance supported an estimated 23 MW of capacity and 34,175 tonnes of avoided emissions a year, while the home loans gave 53 applicants access to green housing.
Because only partial allocation was achieved in the first reporting cycle, the bank said it would publish further allocation and impact reports until the bonds are fully allocated, and would ensure that all unallocated proceeds are allocated within 24 months of issuance, by 12 October 2025. PricewaterhouseCoopers provided independent limited assurance over the use of proceeds.
The report also covers three green bonds issued by FirstRand Bank on 16 May 2024, which raised R3.4 billion. R193.3 million had been allocated to one renewable energy project finance transaction against each of those bonds at 30 June 2024.
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