Bank Windhoek, a commercial bank operating in the Namibian market said it has issued the country’s first green bond to finance eligible green projects and assets.
The bank, which is Namibia’s largest locally owned bank and its second largest lender will become the first commercial lender in southern Africa to issue such a bond which listed on the Namibia Stock Exchange, and raised 66.60 million Namibian dollars ($4.74 million) on a private placement basis.
Ruan Bestbier, a Bank Windhoek treasury sales and sustainability analyst said the bond has a coupon rate of three-month Johannesburg Interbank Agreed Rate plus 150 basis points.
Green bonds are a growing category of fixed-income securities, which raise capital for projects with environmental benefits.
Eligible projects in Namibia include renewable energy, energy efficiency and resource efficiency, green buildings, sustainable waste management, sustainable land use, clean transportation, sustainable water management and climate change.
The Chief Treasurer of Bank Windhoek, Claire Hobbs said “the issuance of Namibia’s first green bond is testament to Bank Windhoek’s vision to be the financial partner of choice, ultimately leading to positive change in the country and the Southern African region”.
Bank Windhoek is a unit of the Capricorn Group, an investment holding company with interests in banking, insurance and asset management in Namibia, Botswana and Zambia.
According to Baronice Hans, the Managing Director of Bank Windhoek, “as a member of Capricorn Group, Bank Windhoek aims to become the green financier of choice for sustainability projects in Namibia and in other countries in which the group operates”.