Nedbank's green energy boost

Nedbank's green energy boost

Published: July 12, 2012

Bank launches green savings bond to back renewable energy projects.

South Africa’s sustainable energy projects have been given a boost after Nedbank launched the country’s first green savings bond.

Money raised through the bond will be invested in renewable energy projects by Nedbank Capital, the bank’s private equity arm. Savers must invest a minimum of ZAR1,000 (US$120) for between 18 months and five years for a 7.5% return.

The South African government has launched a programme to introduce renewable energy sources to the country’s national grid through a variety of projects backed by the private sector. Nedbank Capital has helped to fund projects for 37% of bidders in the initiative’s first phase and expects to fund 39% in the second phase.

Mike Peo, Nedbank Capital’s head of infrastructure, energy and telecoms, said the savings bond will enable more South Africans to help build a sustainable future for the country.

Nedbank’s bond follows its launch last year of BGreen, the country’s first green exchange traded fund.