First Credit Line for Standard Bank in South Africa under GREEN Operation
Supporting Renewable Energy Projects in Sub-Sahara African Countries
- Region: Africa
- Untied Loans
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed on March 27 an untied loan agreement for setting up a credit line (the "Credit Line") totaling up to USD250 million (of which JBIC's portion is USD125 million) with The Standard Bank of South Africa Limited (SBSA), a commercial bank in South Africa. The credit line is cofinanced with Mizuho Bank, Ltd. (lead arranger), with JBIC providing a partial guarantee for the cofinanced portion.
This Credit Line is intended to finance through SBSA the environment-related businesses that use renewable energy such as photovoltaic and solar thermal power generation in Sub-Sahara African countries as part of "Global action for Reconciling Economic growth and ENvironmental preservation" ("GREEN") operations.*1
Standard Bank is the largest financial group in Africa by assets, operating in 20 countries on the African continent. Standard Bank actively supports renewable energy business and this loan is expected to contribute to reducing greenhouse gas emissions in the region. This is consistent with "ACE: Actions for Cool Earth" announced in November 2013.
JBIC launched the "JBIC Facility for African Investment and Trade Enhancement" ("FAITH")*2
to support the promotion of private sector-led growth and the acceleration of infrastructure development in African countries, as the Government of Japan expressed that it would work toward expanding trade and investment in African countries in tandem with the private sector at the 5th Tokyo International Conference on African Development (TICAD V), and this Credit Line is provided as financial support under the FAITH.
As Japan's policy-based financial institution, JBIC will continue to financially support global environment conservation efforts in cooperation with overseas local financial institutions, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
- *1 See Information on April 27, 2010.
- *2 See Information on June 3, 2013.