First National Bank Botswana (FNBB), through its corporate investment banking division, Rand Merchant Bank Botswana (RMB), has pumped P105 million into Barloworld Equipment Botswana, as an innovative ‘green building’ loan.
Through the first-of-its-kind deal, RMB extended the five-year loan to Barloworld to facilitate the construction of a new head office in Phakalane, which boasts cutting-edge sustainability features.
Work on the state-of-the-art building began in 2021. The project has already achieved notable sustainability certifications, including EDGE Advanced Certification (Preliminary Certification), an impressive 51 percent energy efficiency, 29 percent water savings, and 31 percent less embodied energy in materials.
Speaking at the ceremony held at Botswana Stock Exchange (BSE) on Thursday, RMB Acting Director, Harriet Mlalazi explained sustainability was a big part of the bank’s DNA.
“It is within our strategy pillar, and a key part has been updating our governance framework to participate in various aspects of Environmental Social and Governance (ESG). Equally, up-skilling our people to ensure that we understand and are invested in providing sustainable finance solutions,” she said.
Further, as part of its sustainability journey, RMB recently acted as a senior sender, hedging and account bank, providing 50 percent of the debt funding and P405 million in facilities in a landmark Solar PV transaction to fund the development of a new 60MW plant in Mmadinare by Selebi-Phikwe Solar (Pty) Ltd, a 100 percent owned subsidiary of Scatec ASA.
All the power produced by the solar plant will be supplied to Botswana Power Corporation (BPC) through a 25-year Power Purchase Agreement deal.
The project represents a historic transaction in Botswana in terms of the implementation of a large-scale utility renewable energy project and aligns with the government of Botswana’s commitments of shifting energy mix to 30 percent by 2030.
Facilitation of these projects highlight FNBB’s commitment to sustainability, a position evidenced by its business practices and product offerings.
The bank plays a critical role in enabling corporates to achieve sustainability by developing suitable financial solutions that not only focus on profitability but also encourage consideration of the environmental and social impact of business operations.
FNBB remains relentless in its ESG drive which is taking center stage as a global theme for corporate financing, necessitating discussions on how corporates can contribute towards reducing the negative effects of climate change, fuelling sustainable and eco-friendly practices.
