| Mon 2 Jul 2007, 12:12 | | NED - Nedbank Group - Press Release - IFC and Afdb |
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NED
NED
NED - Nedbank Group - Press Release - IFC and Afdb Provide R2 Billion to Nedbank
NEDBANK GROUP LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1966/010630/06
JSE share code: NED
NSX share code: NBK
ISIN: ZAE000004875
("Nedbank Group")
MEDIA RELEASE: IFC AND AfDB PROVIDE R2 BILLION TO NEDBANK TO SUPPORT SUSTAINABLE
ECONOMIC GROWTH
IFC, the private sector arm of the World Bank Group, and the African Development
Bank (AfDB) will subscribe to a R2 billion Tier ll capital qualifying bond
issued by Nedbank Limited ("Nedbank"), the three institutions announced today.
Nedbank will use the capital - R1 billion each from IFC and the AfDB - to
increase lending to under-served markets in the region, including affordable
housing development, black economic empowerment (BEE) transactions, smaller
businesses, large-scale infrastructure and resource extraction projects and the
agribusiness sector.
The investments by the IFC and AfDB in these bonds will be for a minimum of 10
years. This will be Nedbank`s first major offshore funded Tier ll issue. IFC`s
investment will be its largest to date in Sub-Saharan Africa`s financial
markets. This will also be the first time the AfDB will subscribe to Tier ll
capital in Africa. The bond was competitively priced on a floating basis.
"This investment will enable Nedbank to continue lending in sectors where we
have a proven track-record of sustainable delivery," said Tom Boardman, chief
executive of Nedbank Group. "Sustainability is about ensuring financial
prosperity and stability for shareholders and staff, while integrating social
and environmental responsibility into the local communities in the countries in
which we operate. At the same time we need to remain relevant and accessible to
our clients," he said.
In the past three years Nedbank has invested over R5.2 billion in low income
housing, more than R1.2 billion in transformational infrastructure and over R1
billion in the development of small and medium enterprises. The group has also
financed over R8.5 billion in BEE transactions, which facilitate transfer of
ownership to previously disadvantaged individuals and communities in South
Africa, in addition to its own BEE transaction worth R3.1 billion.
"IFC is pleased to partner with institutions that share our sustainable
development values," said James Scriven, IFC Associate Director for Global
Financial Markets. "IFC, the AfDB and Nedbank share the objective of increasing
social and environmental awareness in the financial sector, helping to
contribute to more sustainable economic development across Africa."
"The AfDB is pleased to build on its existing partnership with Nedbank, which
was established in 2005," says Mandla Gantsho, the AfDB Vice President,
Infrastructure, Private Sector and Regional Integration. "This is a landmark
transaction for us, as it is the first time that the AfDB has provided Tier II
capital, which is a critical element in increasing the risk bearing capacities
of banks, as they expand services to reach under-served markets.
In this regard, the AfDB is also pleased to have collaborated with the IFC and
leveraged each others capacities in contributing to the strengthening of the
financial sector here in South Africa, and going forward across Africa."
Nedbank`s commitment to sustainability was recognised in June at the 2007
Sustainable Banking Awards, where it received the award for the emerging markets
sustainable bank of the year in the Middle East and Africa. Now in their second
year, the awards were created by the Financial Times in association with IFC to
recognise banks that have shown leadership and innovation in integrating social,
environmental and corporate governance objectives into their operations.
Nedbank is the only bank in Africa that has adopted the Equator Principles, a
voluntary set of guidelines for managing social and environmental issues related
to the financing of development projects, which are based on IFC`s performance
standards. Launched by 10 banks in June 2003, the principles were revised in
June 2006 and have been adopted to date by more than 50 financial institutions.
2 July 2007
Sandton
Date: 02/07/2007 12:12:00 Produced by the JSE SENS Department.
