Africa’s largest bank by assets, Standard Bank, has provided a sustainable finance solution to China National Building Materials International (Pty) Ltd. (CNBM) in a R600-million deal that will enable the company to distribute solar and energy solutions in South Africa.
The funding package includes a R500-million invoice financing facility and R100-million working capital facility. The transaction demonstrates Standard Bank’s commitment to facilitate South Africa’s renewable energy transition and to help alleviate the challenges of load-shedding on businesses and households.
This is also part of the bank’s objectives to contribute towards positive social, economic, and environmental impacts on the continent, as envisioned in its climate policy adopted in 2022 while unlocking economic growth potential in Africa through accelerated sustainable finance mobilisation.
“This significant milestone highlights our commitment to sustainable social and economic development on the continent. This transaction will enable business continuity and alleviate the socio-economic impact of loadshedding in South Africa,” said Lydia Zhang Executive, Head of China sector South Africa and Core Markets at Standard Bank.
Standard Bank has on-the-ground presence in 20 markets on the continent, positioning it as a key stakeholder with expertise to drive Africa’s just-energy transition from fossil fuels to environmentally friendly alternatives like solar and wind energy.
Msawenkosi Hlanti, Executive Head of Trade Sales, Transaction Banking at Standard Bank South Africa says: “The success of this transaction highlights our experience in providing bespoke solutions for our clients that will enable their growth objectives and contribute towards the socio-economic development of South Africa.”
This is the first sustainable finance invoice financing facility that Standard Bank has concluded with a client, and the solution will see CNBM reporting annually on key impact metrics.
“We are proud to be partnering with Standard Bank in facilitating South Africa’s renewable energy transition through the distribution of our solar and energy storage solutions into the country. The success of the transition will ensure that we realise our growth objectives as a company and that we can have a positive, sustainable impact in South Africa,” says Xian Ping Qian Managing Director at CNBM South Africa.