20 Mar IDC raises ZAR 2bn in maiden sustainable bond – receives huge subscription endorsement from IFC
The Industrial Development Corporation (IDC) has issued a highly successful ZAR 2.046 billion inaugural sustainability bond, surpassing the ZAR 1.5 billion target with an orderbook of ZAR 3.464 billion. The bonds were issued across 5-, 7-, 10-, and 12-year tenors, with strong demand at the long end, demonstrating investor confidence in IDC. Proceeds will support projects aligned with IDC’s Sustainable Finance Framework, reinforcing its commitment to sustainable development.
This bond aligns with the development funder’s ‘New Pathways for Sustainable Industrial Development Framework’ whose objective is to guide the IDC’s strategy as it seeks to expand South Africa’s industrial capacity in a socially inclusive and environmentally responsible manner.
The SA based development funder’s objectives among others include strengthening industrialisation of the local economy, funding Employment Generation; Socioeconomic Advancement & Empowerment; and Climate & Environmental Financing.
“This is a key development in the history of the Corporation. For us as the IDC, this achievement underscores the market’s confidence in our commitment to investing in sustainable and climate resilient projects that seek to strengthen and industrialise South Africa. Among other projects we have a promising pipeline in renewable energy projects including our ongoing support to commercialise the local Green hydrogen economy,” said IDC CEO Ms Mmakgoshi Lekhethe.
The International Finance Corporation’s (IFC) subscribed more than R1bn to the bond affirming the international lender’s confidence in the IDC’s core mandate. “This inaugural sustainability bond marks a significant milestone in our commitment to sustainable development. Our partnership with IFC exemplifies the power of collaboration in mobilising capital towards impactful environmental and social projects,” Lekhethe added.
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Cláudia Conceição, IFC Regional Director for Southern Africa said, “We pleased to strengthen our strategic partnership with IDC as this collaboration marks a significant milestone in our shared commitment to fostering sustainable economic growth and development. Our anchor investment in IDC’s inaugural sustainable bond issuance will not only mobilize additional investor participation but also empower Micro, Small, and Medium Enterprises (MSMEs) in the manufacturing sector, while supporting the government’s Just Energy Transition investment plan.”
To which the IDC Chief Financial Officer Isaac Malevu responded: “IFC’s subscription to this facility reflects investor confidence in the IDC. Your decision aligns with the IDC’s long-term investment strategy of supporting sustainable economic growth and industrial development.”
Issued by
Tshepo Ramodibe
Head of Corporate Affairs
For enquiries contact:
Chimwemwe Mwanza
Media Relations
Email: Chimwemwem@idc.co.za