Sustainable finance and investment

See below for some examples of how we impact our six core SDGs through our sustainable finance and investment: 

• SDG 4: Quality education

  Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.

   

  Investec’s client philanthropy offering

  Investec Wealth & Investment philanthropy offering is strategic in nature, largely focusing on supporting long-term sustainable initiatives across South Africa and managing foundation investments to the market value of R1.2bn. These funds have derived income for distribution to charities, on behalf of our clients, to the value of approximately R53.6mn in the past year. This income is distributed by Investec charitable trusts, in accordance with the decisions made by the respective foundation trustees. Of the funds allocated, the majority (40%) went to education.

   

   

• SDG 6: Clean water and sanitation

  Ensure availability and sustainable management of water and sanitation for all.

   

  Private Capital funds Abeco Tanks

  In South Africa, Investec Private Capital is an equity partner in Abeco Tanks. Water is required for agriculture, business, industry and mining, all pillars of our continent’s developing economies. Abeco Tanks provides hygienic storage of water through their cost-effective large-scale steel storage solutions which include elements of safety, hygiene, quality and durability. These water tanks which address the need for a convenient and stable water supply, have been installed in over 38 countries worldwide. This year, Abeco Tanks have manufactured and supplied 55 water tanks in rural areas (worth R40.4mn) and five water tanks at schools, colleges and universities (worth R2.2mn). In addition, Abeco Tanks supported municipalities across South Africa through 11 projects at clinics and hospitals to the value of R5.4mn. The water tanks have enabled a reliable supply of water to communities and healthcare facilities to ensure that people are able to regularly wash their hands, and played a major role in curbing the spread of COVID-19. Abeco Tanks is the world’s first bank for the business of water, trusted for nearly 40 years to protect against water scarcity. The company’s steel water storage tanks are found in countries across the globe including Africa, Central America and the Middle East. Abeco is a private, family-owned business together with equity stakeholder and funding partners, Investec Private Capital and Global Capital Empowerment Fund. With its 269 000 square foot manufacturing facility in South Africa, and hundreds of employees, Abeco has erected more water tanks than any other company in Southern Africa, making it the definitive leader in water storage solutions.

• SDG 7: Affordable and clean energy

  Ensure access to affordable, reliable, sustainable and modern energy for all.

   

  R1 billion green bond to scale up renewable energy

  We reaffirmed our commitment to funding a sustainable future, with the issue of Investec Bank Limited’s first green bond. The green bond references existing return generating flagship renewable energy projects. These are all accredited renewable projects currently delivering clean power into the grid. The projects also have concurrent programmes helping to create jobs and uplift communities. There is increasing pressure from stakeholders to make a positive contribution through ESG policies and related financing. Green bonds fulfil an important role within the fixed-income component of an institution’s portfolio, especially where there is a reference to bankable, cash-generative projects.

  The bond raised R1bn under Investec’s domestic medium-term note (DMTN) bond programme. The issue, which was 3.8x oversubscribed, highlighted a healthy appetite among institutional investors looking to make a positive impact in terms of their ESG commitments.

  The bond has been issued in line with the green bond principles of the International Capital Markets Association (ICMA), a global association of debt securities issuers as well as the Investec sustainable finance framework. The principles seek to support the financing of environmentally sound and sustainable projects that foster a net-zero emissions economy and protect the environment. Green bonds are the most well-developed of the sustainable finance markets and align well with our aspiration as a Group to fund a clean and energy-efficient world.

• SDG 8: Decent work and economic growth

  Promote inclusive and sustainable economic growth, full and productive employment and decent work for all.

   

  Investec Bank plc draws £1.2bn of funding through the BoE’s Term Funding Scheme for SMEs

  The Term Funding Scheme for SMEs (TFSME) was introduced by the Bank of England (BoE) in March 2020 to provide indirect support to businesses and households through the provision of a cost-effective source of funding to support additional lending to the economy through the COVID-19 pandemic. The £1.2bn of TFSME drawings provides Investec Bank plc with four years of funding at Bank of England base rate, secured on collateral including loans and senior notes from retained securitisations.

• SDG 9: Industry, innovation and infrastructure

  Build resilient infrastructure, promote sustainable industrialisation and foster innovation.

   

  Investec acts as mandated lead arranger and lender to Vantage Data Centers

  Investec Bank Limited’s Corporate Leverage Finance team acted as mandated lead arranger and lender, alongside another South African bank, in relation to Vantage’s $1bn investment into South Africa. The debt will help facilitate Vantage’s investment, together with equity capital that has been raised by Vantage from its shareholders. Fast and secure access to data is vital for South Africa and Africa to grow the digital economy. In addition, it empowers digital entrepreneurship, access to education, and the sharing of ideas which has a proven impact on poverty alleviation and the upliftment of citizens. A major investment in a hyperscale data centre will help to achieve this.

  Vantage Data Centers, one of the world’s leading specialists in hyperscale data centres, is making its first investment into South Africa, with the first one being a hyperscale data centre campus in Midrand, which will be the largest facility in Africa when fully complete. Construction of the 80MW campus, which will more than double Johannesburg’s current IT load capacity, has already begun and will be built in three phases. The first, with 16MW capacity, will be followed by 32MW each in two successive phases. The initial debt facility of R1.125bn, which may soon be increased by R450mn, relates to the first phase of the first data centre on the campus, and is being provided by Investec Bank Limited, alongside another South African bank.

• SDG 11: Sustainable cities and communities

  Make cities inclusive, safe, resilient and sustainable.

   

  Investec leads in €215mn funding to build Ghana’s healthcare infrastructure

   

  Investec Export & Agency Finance team arranged a €215mn financing for two major state-of-the-art hospitals in Ghana’s western region. The loans are fully aligned with Loan Market Association (LMA) Social Loan Guidelines (2021). It is the first LMA social loan in Africa in the healthcare sector. The funding will be used to rehabilitate the Effia-Nkwanta hospital and build a new hospital in Agona, both in the country’s economically important western region. Once completed, the hospitals will improve healthcare in the region, offering a centre of excellence for maternity, obstetrics, gynaecology, and neonatal care, with 500 beds and over 40 000m² of modern medical floor area and 6 000m² of staff housing. Investec’s Export & Agency Finance team worked closely with the Swedish Export Credit Agency (EKN), Swedish Export Credit Corporation (SEK) and the Export Credit Insurance Corporation of South Africa (ECIC) on the deal. It highlights the potential of Africa-based financial institutions, working alongside leading export credit agencies, to lead arrange long-term infrastructure financing for Africa’s growth needs. Investec is the only African bank with this international capability and won the sole lead arranger mandate from the Ghanaian Ministry of Finance, based on our growing track record in this area. The transaction also won a Best Deals 2022 from Global Trade Review – the leading trade and export finance publication globally.