“This loan is part of the European Investment Bank’s continued strong commitment to promoting economic development across South Africa. Working closely with FirstRand Bank to increase electricity generation capacity and promote use of renewable energy will make a key contribution to sustainable growth in the country” Plutarchos Sakellaris, EIB vice-president responsible for activities in South Africa, said.
“FirstRand welcomes the EIB’s significant contribution and looks forward to sourcing energy efficiency and renewable energy projects that can provide power for South Africans and help reduce greenhouse gas emissions using EIB funding” FirstRand Bank’s Chief Executive Officer Sizwe Nxasana said.
The loan will finance investments in a range of climate change mitigation activities. The total investment estimate of the current pipeline of eligible projects is EUR100 million, to which EIB would contribute 40%. Specific focus will be on industrial cogeneration, but projects are also likely to include support for renewable energy schemes, waste or landfill gas for heat and power generation, and energy efficiency installations in residential, public or commercial buildings.
The sub-projects will be identified and individual loans structured by Rand Merchant Bank, the investment banking division of FirstRand Bank.
The loan is part of the EIB’s specific mandate for funding in South Africa. The EIB works closely with the South African authorities, public bodies, private companies and the financial sector to facilitate investment in infrastructure projects of public interest (including municipal infrastructure, power and water supply) and private sector support.
