Standard Bank, mandated lead arranger and underwriter, has successfully supported three new independent electricity generation projects signed into Government’s 2000 MW Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP), together with British International Investment. This, allowing the bank to play a leading role in delivering renewable power to the grid and supporting South Africa’s drive to energy security.
Since the programme’s inception in 2020, when it was gazetted by the Minster of Mineral Resources and Energy to alleviate the country’s power constraints, the bank has supported clients, Scatec and H1 Holdings, bringing three projects valued at over R16-billion to fruition. These renewable solar and battery storage projects will each target 50 MW of dispatchable generation capacity.
The projects are aligned to Standard Bank Group’s Environmental, Social and Governance (ESG) framework, which was captured in the launch of its Climate Policy in March this year. In the policy, Standard Bank commits to achieving net-zero carbon emissions from its own operations for newly built facilities by 2030, for existing facilities by 2040, and in its portfolio of financed emissions by 2050.
Standard Bank Group will also mobilise a cumulative amount of between R250-billion and R300-billion for sustainable finance by the end of 2026. This target includes R50-billion of financing for renewable energy and underwriting of a further R15-billion for renewable energy by the end of 2024.
“As a proudly African financial services provider and corporate citizen, we are deeply honoured to be able to contribute to the Government’s mission to bolster supply of new generation capacity,” says Stephen Barnes, Global Head of Power and Infrastructure for Standard Bank Group. “This is not only about ensuring a reliable supply of power to citizens and a growing economy, but also in ensuring that we meet our obligations as a nation to reduce carbon emissions.”
“It is an especially significant responsibility for Standard Bank to be entrusted with financing these projects, delivering new generation capacity. Even as we assist the country’s developmental needs, we will continue to support our long-standing clients in ensuring that they meet their fiduciary and regulatory requirements to the highest standard,” Barnes says.
Given South Africa’s constrained supply within the context of ageing infrastructure combined with the continued need for maintenance and subsequent drive to increase electricity supply, we welcome this milestone as a step forward. With peak demand reaching winter highs there is a continued shortfall anticipated, and the country has set out ambitious targets to meet this demand, while also boosting the rollout of renewables through its Integrated Resource Plan and RMIPPPP.
This programme is unique in that it allows for base load power to be delivered to the grid. The clients that Standard Bank have supported, facilitate the further development of sustainable energy solutions for South Africa by combining renewable energy solutions with battery storage, reducing South Africa’s reliance on carbon intensive coal and diesel power plants for dispatchable power. These will be one of the first of such projects financed in South Africa and the largest hybrid projects completed on the African continent.
“It is very exciting to not only witness, but to be a part of significant competition and diversity in the South African power generation sector,” says Barnes. “We are confident that these additional projects will create the necessary momentum to shift the country’s reliance from carbon-based fuels towards sustainable energy, creating new green jobs and technical expertise in the sector.”
About Standard Bank Group
Standard Bank Group is the largest African bank by assets, operating in 20 African countries and 5 global financial centres. Headquartered in Johannesburg, South Africa, we are listed on the Johannesburg Stock Exchange, with share code SBK, and the Namibian Stock Exchange, share code SNB.
Standard Bank has a 159-year history in South Africa and started building a franchise outside southern Africa in the early 1990s.
Our strategic position, which enables us to connect Africa to other select emerging markets as well as pools of capital in developed markets, and our balanced portfolio of businesses, provide significant opportunities for growth.
The group has over 46 000 employees excluding Liberty, more than 1143 branches and over 6600 ATMs on the African continent enabling it to deliver a complete range of services across personal and business banking, corporate and investment banking and wealth management.
Standard Bank Group Limited (SBG or group) headline earnings for the twelve months to 31 December 2021 (FY21) was R25-billion, return on equity (ROE) was 13,5%. Standard Bank’s market capitalisation as of 31 December 2021 was R228-billion.
The group’s largest shareholder is the Industrial and Commercial Bank of China (ICBC), the world’s largest bank, with a 20.1% shareholding. In addition, Standard Bank Group and ICBC share a strategic partnership that facilitates trade and deal flow between Africa, China and select emerging markets.
For further information, please visit http://www.standardbank.com
