The World Bank’s International Finance Corporation (IFC) has extended a $225-million loan to South Africa’s FirstRand Bank, which will deploy the finance in support of “energy-efficient and water-smart projects” in South Africa.
The loan includes a $75-million contribution from the Dutch entrepreneurial development bank FMO, which funds sustainable private sector growth in developing countries and emerging markets.
FirstRand group treasurer Andries du Toit said the transaction would provide it with valuable additional capacity to assist those clients participating in the growth of South Africa’s green economy.
IFC country manager Adamou Labara highlighted that the loan was aligned with the IFC’s broader objective of developing South Africa’s climate finance market and to support the country’s shift to a lower-carbon economy.
“Supporting increased access to green and blue financing is critical to fostering a more inclusive, resilient, and sustainable response to growing climate risks on economic development,” Labara said in a statement.
“Our partnership with FirstRand is especially important now as South African businesses recovering from the Covid-19 crisis look to develop sustainable projects.”