Financial services firm Absa has secured the opening investment in its Absa Green Deposit, which is an investment product that will link funds raised to a ring-fenced portfolio of eligible green assets and provide corporate companies in South Africa with an attractive yield.

This initial tranche of funding will be used to finance or re-finance an equivalent amount of renewable energy projects. The initial investment was made by Italian utility local renewable energy subsidiary Enel Green Power South Africa.

The Green Deposit products align with environmental, social and governance and United Nations Sustainable Development Goals objectives and enable investors to deliver a positive social impact.

“As we continue to face the effects of climate change, it is crucial that we take action towards sustainable living and one of the ways we can contribute to this cause is by supporting green financial products that are designed to finance eco-friendly projects and businesses, such as renewable energy, waste reduction and conservation efforts,” says Absa Transactional Banking cash management Africa head Thabo Makoko.

Further, the deposit solution’s green labelling is consistent with the eligibility criteria set out in the Absa Sustainable Finance Framework and is based on international market guidelines.

This framework is an enabling document for the bank to issue green, social and sustainable use-of-proceeds liabilities, he explains.

“Investing in green financial products is not only a responsible financial choice for our planet, but also a smart financial decision that will create a more sustainable future for ourselves and future generations,” he emphasises.

“Our mission is to enable progress with sustainable energy. Innovative solutions, such as the Absa Green Deposit, that are progressive and geared towards sustainability support our vision to create shared value and lasting impact on our journey towards a decarbonised future” says Enel Green Power South Africa country manager Manuele Battisti.