Old Mutual Partners With Nedbank And Standard Bank On Sustainability-linked Funding Facilities Set To Drive ESG Change
Old Mutual Partners With Nedbank And Standard Bank On Sustainability-linked Funding Facilities Set To Drive ESG Change. South African financial services giant, Old Mutual, has partnered with Nedbank and Standard Bank on the refinance of Old Mutuals revolving loan facilities. The refinanced facilities are sustainable finance facilities which are set to drive ESG and sustainable growth outcomes.
Nedbank and Standard Bank have worked as lead arrangers to structure innovative, sustainability-linked revolving credit facilities for Old Mutual, collectively worth over R4.75 billion, with options to extend beyond the agreed term. Standard Bank acted as the lead arranger for a multi-currency sustainability-linked credit facility, while Nedbank was the lead arranger for a ZAR-based, R 3,125bn sustainability linked credit facility.
A first for the insurance industry in South Africa, the facilities closely align to Old Mutual’s sustainability ambitions of reducing its carbon footprint as well as facilitating greater inclusivity and access to funding for those who need it. The facilities will do this by linking the terms of the loans to key performance sustainability indicators for the Old Mutual Group, including reducing the intensity of carbon emissions and investment into SMEs in underserved areas.
Casper Troskie, Chief Financial Officer at Old Mutual Limited said: “We recognise the interconnectivity between the economic, social and environmental systems we operate in, and the urgency to transform our collective growth path to one that is more socially inclusive, low carbon and resource efficient. Collaborating in this way practically enables us to transform the financial services sector to meet the changing needs of our people and planet.” Both facilities will become available from 5 December 2022 and all ESG savings will be used to support initiatives that reduce the intensity of carbon emissions as well as growing its support for SMEs.
Sasha Cook, Standard Bank South Africa’s Head: Investment Banking, Western Cape and Executive: Sustainable Finance said: “With Old Mutual’s core operations focused on the African continent (Old Mutual is present in 14 countries across Africa and has a niche business in Asia) and Standard Bank’s footprint across 20 countries in Sub-Saharan Africa, this is a very natural partnership. Standard Bank’s innovative multi-currency facility provides access to local currency funding across several jurisdictions, leveraging the bank’s strong African footprint to support Old Mutual’s strategy of being a leading African- focused insurer. By collaborating with key clients like Old Mutual to embed sustainability KPIs in their funding strategy, we can expand the impact of our sustainable finance offering throughout the continent.”
Arvana Singh, Head of Sustainable Finance Solutions at Nedbank’s Investment Banking Division said: “Nedbank CIB’s understanding of Old Mutual’s business and its sustainability and ESG ambitions, combined with our proven sector finance, sustainable finance and syndication expertise, were key in our ability to successfully lead arrange, fund and implement the transaction. Through this transaction we continue to use our financial expertise to do good and support key clients such as Old Mutual in embedding its sustainability journey into its financing activities.”
Old Mutual has ramped up its efforts at creating mutual futures for its stakeholders. In 2021, the Group invested R150.5 billion of assets under management in the green economy. In the same period, it also increased its support for SMEs to the tune of R260 million, reaching 4600 small business with customised funding solutions, market access facilitation and post- investment support. “We are proud to partner with both Nedbank and Standard Bank on these industry-first initiatives which we are confident will help us deliver against our ESG targets,” concludes Troskie.
