SOUTH AFRICA – Standard Bank, a financial services group, has led the arrangement of a R6 billion (US$355.64m) sustainability-linked term facility and a R800 million (US$47.42m) sustainability-linked working capital facility for Motus, the first ZAR-based sustainability-linked funding in the South African automotive sector.
“Through our close client engagement, Standard Bank was able to partner with Motus in creating a financing solution that supports the continued growth ambitions of the business while also aligning with its ESG commitments,” said Anneke Lund, Sustainable Finance Executive at Standard Bank Group.
“Our role as mandated lead arranger, bookrunner and sustainability coordinator brought market participants together to successfully syndicate its first ZAR-based sustainability-linked funding in South Africa.”
“Partnerships remain vital in not only providing access to financing for our expansion plans, but also in leveraging our extensive reach, experience and insight into the African market’s social, economic and regulatory landscape,” added Osman Arbee, CEO of Motus.
“As we enter our 75th year of operations, our commitment to ESG practices and principles, will ensure we remain a sustainable and valuable contributor to our customers, employees, supply chain partners and the communities in which we operate.”
As Motus achieves its key performance indicators (KPIs), it receives an incentive in the form of a favourable rate benefit and vice versa should it not achieve its KPIs.
This drives Motus’ environmental and social impact through material KPI selection and setting ambitious targets, with a focus on its own road fuel consumption, water consumption, electricity efficiency and gender equality to drive diversity and inclusion.
“ESG performance is both a financial and ethical priority. Companies that operate in a sustainable manner tend to have lower risk profiles and outperform those that don’t over the long-term,” said Lund.
“For this reason, demand continues to grow for sustainability-linked financing that can offer clients the opportunity to narrow down the focus on its environmental impact strategy and to deliver socio-economic impact.”
Standard Bank is focused, primarily through its Sustainable Finance division, on providing financial products and services that support positive ESG outcomes, including green and social bonds, sustainability-linked loans and bonds, sustainable trade and working capital solutions and impact investing.
“We are therefore delighted and proud to partner with Motus in supporting its growth ambitions while also contributing to transformation in our economy.”