- The facility targets women and youth
Absa Bank Botswana and Stanbic Bank have provided Norsad Capital Limited, an African private debt firm, with a ZAR680 million 6-year sustainability-linked funding package.
This initiative aims to support Norsad Capital’s growth objectives and impact investment initiatives. Expected to reach over two million people across the continent, the funding underscores a commitment to sustainability and positive socio-economic impact in Africa.
The two commercial banks commenced capital-raising efforts over a year ago. Absa committed ZAR400 million to the initiative, while Stanbic, recognized as Africa’s largest bank by assets, contributed ZAR280 million.
According to Norsad CEO Jon Davies, the debt firm has been a regional impact investor for 30 years. Davies elaborated that this facility is tailored to specifically target women, youth, and financial inclusion initiatives. He anticipates that by the end of the period, the initiative will have positively impacted two million people across the African continent.
When elaborating on the facility during the signing ceremony this week in Gaborone, Absa Bank Botswana’s Head of Corporate and Investment Banking, Tebogo Giddie, said the funding will be used to invest in companies that drive social impact through financial inclusion and creation of jobs for women and youth across sub- Saharan Africa.
“Norsad is an impact investor and a regional private credit firm that has the ambition to impact the lives of 100 million Africans by 2030,” said Giddie.
“We are delighted that through this funding, we are making this a reality and we commit to continue to supporting businesses such as Norsad to ensure the sustainability of our continent.”
Giddie pointed out that Absa has implemented a comprehensive sustainability financing framework that guides its operations.
This includes the inaugural sustainable bond issuance last month, which she said is not only a milestone for the bank but also for the local financial markets.
“This is a clear demonstration that sustainability is the bedrock of our business,” she said.
“We are excited to be at the forefront of this innovative approach to financing.”
Giddie asserted that sustainable linked funding through impact investing allows Absa to achieve its financial goals while simultaneously making a positive difference in the world.
“This aligns perfectly with our values and commitment to sustainability.”
Stanbic Bank Botswana’s Head of Corporate Investment Banking, Morufhi Masikara, said the bank is committed to promoting sustainable economic development in the continent and is proud to have the opportunity to support clients such as Norsad Capital, who have similar goals and shared sustainability lens for impact.
“Our market-leading Sustainable Finance expertise as well as regional debt structuring experience, allowed the transaction to be uniquely tailored to Norsad’s financing needs, whilst aligning to some of their strategic sustainability goals,” said Masikara.
