South Africa: IFC provides $42m loan package to Business Partners
The IFC is providing a R600 million ($42 million equivalent) loan package to Business Partners Ltd, a South African non-banking financing entity specialised in providing finance, mentorship, and support programmes to SMEs.
Business Partners will use IFC’s loan to finance the construction of certified green commercial buildings in South Africa and/or to renovate existing commercial buildings to make them more environmentally friendly, making them at least 20% more energy efficient. Eligible green building certifications will include EDGE, LEED, BREEAM, and Green Star.
IFC will also provide financial incentives to Business Partners to partially offset the costs involved in greening and certifying buildings, based on the company meeting certain green building targets in their portfolio. The incentives will be funded by the IFC-UK Market Accelerator for Green Construction (MAGC) programme, which has been funded by the UK Government with the objective to scale up green construction across emerging markets by incentivising financial intermediaries to develop and introduce new green building construction finance products.
”South Africa is one of the world’s most carbon-intensive economies and as a result the country’s green economy has huge market potential. Through investments into the development of green buildings by the SME sector, we believe we will not only be playing our part in preserving our environment but also contributing to much-needed economic growth, job creation and energy security. We are grateful to the IFC for this opportunity to support businesses that make a difference,” said Ben Bierman, managing director at Business Partners Ltd.
”Working together with Business Partners Ltd, IFC will contribute to the creation of commercial green buildings and to making available green commercial building finance targeting SMEs in the South African market for the first time,” said Adamou Labara, IFC’s country manager for South Africa. ”Green building development will support South Africa’s economic recovery from Covid-19 and help the country reduce its use of strained water and electricity resources.”
This is IFC’s first loan in South Africa exclusively dedicated to green lending for commercial properties. The investment will be supported by IFC advisory services to help Business Partners Ltd strengthen its green building finance capacity.
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