The World Bank’s private investment arm, the International Finance Corporation (IFC), has announced a $250 million loan to South African lender FirstRand Ltd. aimed at boosting loans for green buildings.
The funding package includes an IFC loan of up to $200 million and an additional $50 million from the Managed Co-Lending Portfolio Program, an IFC syndication platform for institutional investors, according to a joint statement released on Monday.
A portion of the funds will be earmarked specifically for the affordable housing sector and to support women, the statement added. This initiative aligns with South Africa’s broader environmental and social objectives.
“IFC’s partnership with FirstRand will not only provide vital funding for access to housing but also expand green-certified construction loans and home mortgages in South Africa, helping the housing sector become more climate-friendly and resilient,” said Cláudia Conceição, IFC Regional Director for Southern Africa, in an emailed statement.
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As part of this agreement, IFC will offer capacity-building support to FirstRand’s appraisers, loan officers, internal teams, and construction partners. Additionally, the IFC will provide advisory services on product development to enhance the bank’s offerings.
This financial injection is anticipated to bolster South Africa’s efforts to reduce greenhouse gas emissions by 42% by 2025, with a significant focus on green buildings as a key component of the nation’s climate strategy.