
Nedbank Corporate and Investment Banking (Nedbank CIB) has successfully launched a R2 billion sustainability tier II bond for the Nedbank Group, listed on the JSE’s sustainability segment on 7 November 2024.
This bond has attracted demand that doubled the available supply and seeks to tackle pressing social and environmental issues within South Africa.
The proceeds will be directed towards three key focus areas:
- Affordable housing – This initiative is designed to provide mortgages for low-income women, promoting greater female homeownership and access to housing, addressing the historically low levels of ownership among women in South Africa.
- Water infrastructure – Focused on expanding access to safe drinking water and enhancing sanitation through sustainable water management initiatives, this effort is vital for providing adequate sanitation facilities and improving the quality and efficiency of water supplies.
- Climate-smart agriculture – Supporting projects that foster sustainable agricultural practices, this initiative aims to boost productivity and water efficiency for local farmers. Techniques include water conservation strategies, soil health improvements, advanced irrigation systems, and protective shade netting to safeguard crops from adverse weather.
These focus areas were established through comprehensive internal collaboration, incorporating insights from Nedbank’s Tabono Women Advancement Programme, which empowers women to acquire crucial skills for progression within the organization. This strategy aligns with Nedbank’s Sustainable Finance Fundraising Framework and its dedication to sustainable development.
Nedbank distinguishes itself as the only South African bank to issue a sustainability tier II bond with this distinctive combination of use-of-proceeds categories, encompassing both green and social impact elements that extend beyond the conventional renewable energy, affordable housing, and green building classifications.
Impact
The bond’s outcomes will be quantitatively measured and reported each year throughout its lifespan, including detailed reports on the number of mortgages issued to women, the volume of water supplied or conserved each year, and the productivity or water savings achieved from climate-smart agriculture initiatives.
This transaction received support from a pre-issuance second-party opinion by S&P Global.
Nedbank will provide annual compliance verifications to the JSE post-issuance, ensuring continued conformity with the Sustainable Bond Principles established by the International Capital Markets Association.

Johan Malan, principal of Sustainable Finance Solutions at Nedbank CIB. Image: Supplied
Nedbank maintains its commitment to leveraging financial expertise to benefit both clients and society.
We recognize that directing financing towards initiatives that generate positive environmental and social outcomes is one of the most effective ways to achieve this, thus contributing to relevant Sustainable Development Goal targets within our local context.
Integrating sustainable finance solutions is essential to our business model.
The bond was structured by the Nedbank CIB Sustainable Finance Solutions team, with collaborating efforts from the Debt Capital Markets, Syndication, and Distribution teams.
The successful execution of this transaction underscores the collaborative spirit within Nedbank, including partnerships with teams in Public Sector, Construction, Agriculture in Investment Banking, and the Home Loans team within Retail and Business Banking.
Johan Malan is principal of Sustainable Finance Solutions at Nedbank CIB.
Brought to you by Nedbank Corporate and Investment Banking (CIB).
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