Nedbank CIB wins Energy Deal of the Year at 2020 African Banker Awards

Nedbank CIB was nominated for its Nedbank Green Renewable Energy Bond and ‘Kimchi’ Syndication.

Nedbank CIB’s Nedbank Green Renewable Energy Bond issuance has been awarded Energy Deal of the Year at the 2020 African Banker Awards held on 26 August.

The Nedbank Green Bond was listed on the green segment of the JSE on 30 April 2019 and was the first issuance of this type of sustainable fundraising instrument in the local market by a South African bank.

Nedbank CIB’s Arvana Singh and Bruce Stewart said in a statement that the bond was exceptionally well received, as evidenced by the fact that the auction process on 24 April, which targeted R1.5 billion in funding, ultimately attracted local and international bids of R5.4 billion. “Due to the overwhelming response, Nedbank upsized the issuance to R1.7 billion and issued across three, five and seven-year tenors,” the statement read.

The funds raised from the bonds will be used to construct renewable energy projects across Southern Africa, contributing to positive environmental impact and building Africa’s “green economy”.

Nedbank CIB was also nominated for Deal of the Year in the Debt Finance award category for its involvement in the successful conclusion of the AFC ‘Kimchi’ Syndication transaction.

The US $140 million ‘Kimchi’ Syndicated term loan for Africa Finance Corporation (AFC) was the first ever Korean-focused loan facility for an African borrower. “The proceeds of the transaction will be used for general AFC corporate purpose bolstering the institution’s capacity to diversify its funding sources in support of sustainable African infrastructure development,” the statement said.

Arvana said that the success of both transactions, and especially the receipt of the Energy Deal of the Year award, are evidence of the value delivered by CIB’s highly collaborative, cross-business approach.

“Close collaboration between our teams, businesses and clients has always been the foundation of the Nedbank CIB approach,” she explains, “and the recognition we have received through these nominations from the prestigious African Banker Awards serves to reinforce the value of our commitment to leverage our financial expertise, and partner with our clients, to deliver social and economic development benefits for all in Africa.”