Absa Successfully Closes USD 300 million Green Syndicated Term Loan Facility - Absa Group

13 December 2024

Absa Bank Limited (“Absa”) has successfully signed a USD 300 million green syndicated term loan, marking a significant milestone in its commitment to long term investment in sustainability. This facility, coordinated by SMBC Group (“SMBC”) and Standard Chartered Bank (“Standard Chartered”), is Absa’s first green syndicated term loan and the first green use of proceeds syndicated transaction for a South African bank. The facility serves to replace the existing sustainability linked facility which was signed in December 2022.

This facility exemplifies Absa’s integrated sustainability agenda. With an initial two-year tenor and an option for a one-year extension, the proceeds will exclusively finance and refinance eligible green assets, in accordance Absa’s Sustainable Finance Issuance Framework1.

Absa’s Sustainable Finance Issuance Framework is a cornerstone of the group’s ESG funding aspirations, addressing material sustainability risk, societal development, and robust governance standards. This framework reflects Absa’s broader sustainability vision of being an Active Force for Good.

The green syndicated term loan supports Absa’s strategy to address global sustainability challenges through innovative financing solutions. By channeling funding into impactful projects, Absa reinforces its role as a leader in sustainable finance while supporting global efforts to transition to a low-carbon economy.

Absa has led the way in sustainable finance across Africa. In March 2021, Absa became the first South African bank to announce bold sustainable finance targets, committing to mobilise R100 billion in sustainable finance by the end of 2025.

The loan facility was well received in the loan market and was significantly oversubscribed, with commitments exceeding USD 550 million from 19 geographically diverse institutions. This overwhelming interest underscores market confidence in Absa’s sustainability agenda and its ability to deliver impactful financing solutions.

The transaction further reinforces Absa’s belief that sustainable finance is pivotal to achieving long-term environmental and societal goals. As part of its sustainability agenda, Absa is dedicated to providing solutions that not only create value for its clients but also contribute to the global transition toward sustainability goals.

Full list of particpating banks:

Co-ordinators, Mandated Lead Arranger & Bookrunners:

Standard Chartered Bank

SMBC Group

Mandated Lead Arranger & Bookrunners:

Bank of Amerıca Europe DAC,

Bank of Communıcatıons Co., Ltd. Johannesburg Branch

Chına Constructıon Bank Corporatıon, Johannesburg Branch

Industrıal and Commercıal Bank of Chına Lımıted, London Branch

J.P. Morgan Securıtıes Plc

Commerzbank Aktıengesellschaft

Emırates NBD Capıtal Lımıted

Bank of Indıa, London Branch

Bank of Chına Lımıted, Johannesburg Branch

Abu Dhabı Commercıal Bank PJSC

Landesbank Baden-Württemberg

Mashreqbank PSC

Mızuho Bank, Ltd.

State Bank of Indıa, Johannesburg

SBI (Maurıtıus) Lımıted

Wells Fargo Bank, N.A., London Branch