A second green bond in Namibia is raising US$24.3 million. The transaction led by Rand Merchant Bank (RMB) for First National Bank (FNB Namibia) will finance green housing and renewable energy.
The green bond market is taking hold in Namibia. The southern African country has recorded its second transaction thanks to Rand Merchant Bank (RMB). The South African bank conducted the transaction for First National Bank (FNB Namibia) to raise funds on the capital market to finance green projects in Namibia. The green bond listed on the Namibia Stock Exchange (NSX) raised N$353 million (US$24.3 million) in three and five-year bonds.
According to RMB, the proceeds of the bonds will be managed by FNB, which will provide loans to finance green projects in Namibia, including the construction of green buildings and renewable energy production.
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“The green bonds (…) were issued outside of FirstRand’s sustainable bond framework, which was established at group level to support the issuance of thematic debt instruments (including its subsidiaries, such as FNB Namibia). This framework has been independently assessed and is aligned with the International Capital Markets Association’s Green Bond 2021 Guidelines and Principles,” says RMB.
Namibia’s first green bond was issued by Bank Windhoek, a commercial bank listed on the NSX. The bank raised US$4 million, which was used to finance solar energy projects for productive use, particularly in the agricultural sector. Globally, the green bond market has grown exponentially, by more than 100% per year (as of December 2021). Africa accounts for only 0.03% of this global market (as of December 2021). African countries entering the green bond market include South Africa, Kenya and Egypt.
Jean Marie Takouleu
