NAMIBIA – Bank Windhoek Green Bond, Namibia’s first listed green bond, has raised N$66 million (US$4.43m), funding the generation of various types of renewable energy around the country, envisioned to reduce the country’s carbon footprint.
The funded renewable energy projects are expected to generate 77,9 million kWh of electricity in the next five years and reduce 305 710 tonnes of carbon dioxide-equivalent greenhouse gasses in the next 25 years.
The solar photovoltaic (PV) projects financed by the Bank Windhoek Green Bond could reduce annual greenhouse gas emissions by 305,710 metric tonnes over its expected lifetime according to a report released this week.
Bank Windhoek’s Sustainability and Deal Origination Manager, Ruan Bestbier said that the amount of carbon dioxide emissions reduced in one year is theoretically equivalent to energy for 1,272 homes in a year, 2,382 passenger vehicles driven for one year or charging 1,406,224,182 smartphones.
According to the bank the first of the eligible projects funded with Bank Windhoek Green Bond financing is a solar photovoltaic project located just outside of Windhoek.
Bestbier, who was speaking at the release of the Green Bond Impact report said the projects financed with this facility focused on solar electricity generation and directly address the UN’s Sustainable Development Goals 7 and 13.
He said that the seven solar photovoltaic projects financed with the funds raised within 12 months after the initial Green Bond issuance was an excellent learning experience for the Bank’s staff and clients involved.
“Our investors unanimously agreed that the Green Bond should be seen as an important tool for creating awareness among the public on the links between sustainable development and favourable finance. It is clear that there is no shortage of bankable green projects in the Namibian market despite the impact of the COVID-19 global pandemic which placed some stress on existing and new developments,” said Bestbier.
“The NSX is proud to have listed Bank Windhoek’s Green Bond, making it a first for the NSX and a truly Namibian product,” Namibian Stock Exchange Chief Executive, Tiaan Bazuin said at the release of the report.
Bank Windhoek’s Managing Director, Baronice Hans believes that the Green Bond enabled the bank and Capricorn Group to meet their clients’ sustainability requirements by creating a complete value chain from raising green funding to offering favourable green loans with favourable terms that contribute to a low-carbon and client resilient future.
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