Bank Windhoek releases Green Bond Impact Report

22 July 2020 | Banking

Bank Windhoek this week published its first Green Impact Report. The report details projects that received funding from its NSX listed Green Bond proceeds and highlights the core environmental impact indicators on a project level basis.
The impact indicators are derived from the bank’s Green Bond Framework and the International Capital Market Association’s Green Bond Principles.
Bank Windhoek issued a Green Bond to international acclaim when it listed on the Namibia Stock Exchange during December 2018. This positions Bank Windhoek as the first commercial bank to issue a Green Bond domestically and across the Southern African region.
The success of Green Bond was recognised internationally when it received the “Green Bond Pioneer Award” from Climate Bonds Initiative in 2019.
Green bonds generally are fixed income instruments where the proceeds are exclusively applied to finance or re-finance, in part or full, new and /or existing eligible Green Projects and which are aligned with the four core components of the International Capital Market Association’s (ICMA) Green Bond Principles (GBP).
In its simplest form, the bank raises a fixed amount of capital, repaying the capital (principal), and accrued interest (coupon) over a set period. It is a win-win situation for both the bond issuer and the investor, as they can contribute towards sustainable future and showcase themselves as a responsible organisation.
The majority of applications for green financing was for solar energy projects to add to the national grid and to assist companies to become self-reliant.
Bank Windhoek’s sustainability and deal origination manager, Ruan Bestbier, said that the overall expected electricity generated and the Annual Green House Gas emissions from the project in tonnes of Carbon Dioxide Equivalent [tCO2_e], the solar photovoltaic (PV) projects financed by the Bank Windhoek Green Bond could generate over its expected lifetime, is 305 710 metric tonnes.
The amount of carbon dioxide (CO2) emissions reduced in one year is theoretically equivalent to 1 272 homes’ energy use for one year, 2 382 passenger vehicles driven for one year and the charging of 1 406 224 182 smartphones.
“In Namibia, we continuously see the impact of global warming and the effects of climate change. Bank Windhoek also aligns its practices and sustainability performance to the relevant Sustainable Development Goals (SDGs) set out by the United Nations. These projects directly address goals seven and 13,” said Bestbier.
“We are proud of the seven solar photovoltaic projects that were successfully financed with the N$66 million raised within 12 months after the initial Green Bond issuance and this was an excellent learning experience for the staff and clients involved,” he added.
“Our Investors were unanimously that the Green Bond should be seen as an important tool for creating awareness on the links between sustainable development and favourable finance,” Bestbier said.
“Bank Windhoek’s Green Bond is listed on the Namibia Stock Exchange (NSX) and complies with the Sustainable Stock Exchanges (SSE) Initiative, a United Nations (UN) Partnership Programme of the UN Conference on Trade and Development (UNCTAD), and the UN Global Compact, which aims to build the capacity of stock exchanges and securities market regulators to promote responsible investment and advance sustainable practices,” said the CEO of the NSX, Tiaan Bazuin.
“The NSX is proud to be part of this, making it a first for the NSX and a truly Namibian product,” Bazuin said.
“The Bank Windhoek Green Bond is the result of passionate individuals within the bank, protecting the environment and contributing toward the wellbeing of the country and in this aspect our treasury team have set an example of what is possible,” said Claire Hobbs, chief treasurer at Bank Windhoek.
“We strive to continue the momentum gained by the Green Bond and want to diversify our Green loan portfolio more towards sustainable agriculture and tourism as well as energy efficiency investments in order to improve the pipeline of bankable green projects, growing the market for sustainable finance mechanisms,” said Bestbier.
“Bank Windhoek identified the opportunities that Green Bond issuance could create locally, as a sustainable investment vehicle for institutional investors and as a financing mechanism. We would like to consider the issuance of a second Green Bond,” he added.
Bestbier further said that the current global COVID-19 pandemic and rising energy prices will likely continue to challenge the growth of Namibian businesses in the future.
Bestbier believes that this demonstrates the need to assess and adapt to a changing climate. “With Bank Windhoek’s Green Bond initiative coupled with our participation in the Sustainable Use of Natural Resources and Energy Finance Programme (SUNREF), a green finance and technical assistance facility, we were able to turn bankable projects into sustainable reality.”
Bank Windhoek’s managing director Baronice Hans said this was a milestone for Bank Windhoek and the Capricorn Group, which set the tone of their commitment to sustainability and the growth of local and regional renewable energy generation.
“We believe that the Green Bond enabled us to meet our clients’ sustainability requirements. I want to thank all our partners in making Southern Africa’s first Green Bond such a success,” Hans concluded.

Similar News

 

Bank Windhoek releases Green Bond Impact Report

2 weeks ago - 22 July 2020 | Banking

Bank Windhoek this week published its first Green Impact Report. The report details projects that received funding from its NSX listed Green Bond proceeds and...

Savvy business banking: Single pricing fee choices make sense

3 weeks ago - 13 July 2020 | Banking

Running a business can be stressful. Managing your money shouldn't be. Does your bank provide you with choices and helpful banking solutions by devising flexible...

Ensuring fintech remains client-centric

4 weeks ago - 08 July 2020 | Banking

B7: Your recent appointment has certainly been welcomed by a number of people and stakeholders – would you mind giving us some background of your...

Harnessing curiosity

1 month - 03 July 2020 | Banking

Mariselle Stofberg The diverse and ambitious Marion Scheün advises young individuals to find something that they are passionate about and cultivate that into a career....

New WB Supermarket opens at Ongwediva

1 month - 01 July 2020 | Banking

In spite of dealing with the complications around Covid-19, WB Supermarkets managed to continue finishing a brand new supermarket at Ongwediva.The new branding and look...

Kamfer’s powerful planning

1 month - 18 June 2020 | Banking

Jeane Kamfer has proven that with determination and perseverance, anything is possible if you believe in who you are and what you can do. Kamfer...

Easier finance for vulnerable Namibians

1 month - 17 June 2020 | Banking

Phillepus Uusiku – The more vulnerable and unbanked segments of the Namibian population are set to benefit from a concessional loan of N$235 million Namibia...

Nedbank Namibia appoints new COO

1 month - 16 June 2020 | Banking

Victor Ashikoto has taken on a new role as the chief operating officer (COO) of Nedbank Namibia. He is a seasoned information and communication...

Ester Kali steps in as chair of BAN

1 month - 16 June 2020 | Banking

Phillepus Uusiku - The Bankers Association Namibia (BAN) has announced that Letshego Bank Namibia chief executive officer, Ester Kali, has assumed the chair of the...

New N$30 note now available

2 months ago - 18 May 2020 | Banking

Phillepus Uusiku- The new N$30 bank note was issued on Friday by the deputy governor of the Bank of Namibia (BoN), Ebson Uanguta, and it...

Latest News

River-crossing fugitive in custody

12 hours ago | Crime

OGONE TLHAGEWINDHOEKImmanuel David, a Namibian-born South African passport holder who entered the country illegally by crossing the Orange River in a canoe in June, has...

Harambee goal down the toilet

12 hours ago | Government

Jo-Maré Duddy WINDHOEK Of the 50 000 toilets in informal settlements in rural areas President Hage Geingob promised in his Harambee Prosperity Plan (HPP)...

Contraceptive shortage: 27 900 unintended...

12 hours ago | Health

JEMIMA BEUKESWINDHOEKA study predicts that up to 27 900 unintended pregnancies may occur in Namibia because of a shortage of contraceptives brought about by the...

RFA spend massive amounts

12 hours ago | Economics

The Road Fund Administration (RFA) has over the past five-years allocated N$ 177.2 million to the City of Windhoek towards road maintenance and traffic law...

Rid Namibian police of rogue...

12 hours ago | Opinion

Videos of Namibian police officers assaulting alleged illegal immigrants from Zambia are a continuation of many violations that have become common place within the national...

'Covid-19 used for hidden agendas'

12 hours ago | Labour

ELLANIE SMIT WINDHOEK The Trade Union Congress of Namibia (Tucna) yesterday accused government of purposefully using the Covid-19 pandemic to clandestinely and deliberately destroy parastatals,...

Otavi man commits suicide by...

12 hours ago | Crime

NAMPAOTJIWARONGOA 30-year-old man from Otavi committed suicide by allegedly drinking acid on Monday.Otjozondjupa police spokesperson, Inspector Maureen Mbeha, said yesterday the deceased has been identified...

N$5.5m for wildlife protection

12 hours ago | Environment

ELLANIE SMIT WINDHOEK The Game Product Trust Fund (GPTF) has become increasingly important in protecting wildlife due to a lack of funding from government. The...

COMPANY NEWS IN BRIEF

12 hours ago | Business

Disney takes US$5 billion hit Walt Disney Co avoided the unmitigated disaster some investors feared as it eked out an adjusted profit amid the coronavirus...

Load More