DCM IDC (IFC-49656)

Countries
  • South Africa
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Mar 18, 2025
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
INDUSTRIAL DEVELOPMENT CORPORATION OF SOUTH AFRICA
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 108.33 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS May 21, 2025

Disclosed by Bank Mar 24, 2025

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the proposed project is an IFC subscription of up to ZAR 2 billion (~US$107 million) to a series of 7-year and 10-year senior unsecured bonds to be issued by the Industrial Development Corporation (IDC) under IDC's domestic medium-term note (DMTN) Program and approved Sustainable Bond Framework, including Sustainability, Green, Social and Transition Bonds. IFC's subscription will be done over several issuances.

IFC's investment will support the issuance of IDC's first-ever sustainability bond under the IDC’s Sustainable Bond Framework aligned with the International Capital Market Association (ICMA) Principles, including the Sustainable Bond Guidelines, Green Bond Principles, and Social Bond Principles. Additionally, the framework incorporates guidance from the Climate Transition Finance Handbook, which may be applied to Green, Social, Sustainability, and Sustainability-Linked Bonds. The inaugural Sustainability bond will be listed on the Johannesburg Stock Exchange (JSE) in the Sustainability segment. IFC's participation will help underpin IDC's strategic priorities in sustainability linked financing.

The IFC proceeds from the Sustainability Bond issue will be allocated in line with IDC’s Sustainable Bond Framework and eligibility criteria, supporting a range of eligible green and social projects. In line with these criteria, IFC’s proceeds will specifically contribute to MSME financing and small-scale solar projects under 5 megawatts, reinforcing the commitment to sustainable and inclusive development. The allocation of proceeds for all investors, including IFC, specifically related to MSMEs (such as women- and youth-owned businesses) and small-scale solar projects under 5 megawatts, will be disclosed in relevant reports as outlined in IDC’s Sustainable Bond Framework.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The proposed Project entails an IFC subscription to a series of Bonds (including Sustainable, Green, and Transition Bonds) issued by IDC with IFC’s use of proceeds directed towards supporting SMEs and small solar related transactions. The key E&S risks and impacts of the project derive from the Company's capacity to identify and manage potential E&S risks associated with the subprojects supported under the use of proceeds. Typical E&S risks associated with sub-projects may be related to labor and working conditions, occupational health and safety, or supply chain related risks, amongst others. As such, the project has been categorized as FI-2 in accordance with IFC’s Sustainability Policy.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The Project involves a ZAR 2 billion (~US$ 107 million) client envelop for IFC to subscribe in senior unsecured bonds to be issued by the IDC under the Sustainable Bond Framework. IFC will anchor the bond issue. IFC's subscriptions are expected to be on 7-year and 10-year bond tenors.

IFC's Investment as Approved by the Board: Loan 108.33 million (USD)

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

The Industrial Development Corporation (IDC), founded in 1940, is a State-Owned Entity (SOE) wholly owned by the Government of South Africa but operates independently. As a leading development finance institution focused on the industrial sector, the IDC plays a key role in providing growth capital to SMEs in manufacturing. Through a range of financial instruments, including equity, debt, mezzanine, and working capital solutions, the IDC aligns with national policies to drive sustainable job creation, economic transformation, and industrial capacity development, with a particular focus on supporting women and youth entrepreneurs.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Industrial Development Corporation
Nhlanhla Xulu
Senior Funding Manager
+27 (0)11 269 3959
NhlanhlaX@idc.co.za
PO Box 784055Sandton, 2146
www.idc.co.za

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

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How it works