by SAVIOUS KWINIKA
JOHANNESBURG, (CAJ News) – AFRICAN Bank has successfully raised R700 million through its first-ever social bond issuance, marking a significant milestone in its 50th anniversary year and reinforcing its commitment to environmental, social and governance (ESG) principles.
The three- and five-year social bonds attracted more than R1 billion in bids, reflecting strong investor confidence in the Bank’s newly launched Sustainable Finance Framework.
The framework enables African Bank to issue Green, Social and Sustainability (GSS) bonds and loans, with proceeds directed toward projects that advance financial inclusion, entrepreneurship, and environmental sustainability.
“This framework is more than a financial tool; it’s a commitment to responsible banking, inclusive growth, and environmental stewardship,” said Edna Sathekga-Montse, Group Chief Transformation and Sustainability Officer.
“It ensures our strategy addresses internal operations, stakeholder relationships, community impact, and long-term environmental sustainability.”
The funds will initially support the financing of small and medium enterprises (SMEs), a sector seen as vital for South Africa’s job creation and economic growth.
In future, proceeds may also be channelled into renewable energy and other green initiatives.
The initiative aligns with the United Nations Sustainable Development Goals (SDGs), particularly those on climate action, gender equality, and financial inclusion.
African Bank confirmed that annual Allocation and Impact Reports will be published, alongside independent verification, to ensure transparency and accountability.
With JSE approval and a Second Party Opinion confirming adherence to international standards, African Bank has positioned itself as a catalyst for inclusive and sustainable growth in South Africa.
– CAJ News