The International Finance Corporation (IFC), a subsidiary of the World Bank Group, has granted a USD 200 million loan to the South African bank Nedbank to increase financing for renewable energy projects in South Africa. The goal is to help the country switch to cleaner forms of energy, reduce greenhouse gases (GHGs) and create jobs in the renewable energy sector.

The deal represents the third dedicated green finance investment in the South African financial sector and is part of IFC's broader goal to grow the South African climate finance market.

Nedbank is the first commercial bank in the country to launch a green bond on the JSE, a local exchange. The loan will enable the bank to expand its green finance operations and grow its climate portfolio by financing renewable energy projects, and enable the country's transition to cleaner sources of electricity generation.