FIRSTRAND BANK LIMITED (FMO-58365)

Countries
  • South Africa
Where the impacts of the investment may be experienced.
Financial Institutions
  • Netherlands Development Finance Company (FMO)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Bank Risk Rating
A
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Aug 4, 2020
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
FirstRand Bank
The holder of the loan, grant, or other investment.
Sectors
  • Agriculture and Forestry
  • Climate and Environment
  • Energy
  • Finance
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Ring Fence
  • Climate
A financial intermediary is a commercial bank or financial institution that receives funds from a development bank, sometimes for a specific lending purpose. A "ring fence" is another name for this specific purpose. These funds are then used for lending by the financial intermediary to client companies or individuals.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 75.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ FMO website

Updated in EWS Jul 20, 2021


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Project Description

According to FMO's website, this project provides financing to FirstRand Bank to expand its climate finance portfolio in South Africa. This project will support the bank's funding of renewable energy and energy efficiency projects in corporates and smaller businesses. It also facilitates the bank’s shifting focus in its climate portfolio, from mitigation to resilience, through the financing of “climate smart infrastructure”, agriculture and manufacturing.

Investment Description
  • Netherlands Development Finance Company (FMO)
Financial Intermediary
A financial intermediary is a commercial bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds.
Private Actors
Private Actors Description

FirstRand Bank is a Tier 1 financial institution in South Africa. It is #2 by total assets and with 22% total market share as of December 2019. The bank had total assets of US$92 billion, net loans of US$63 billion, customer deposits of US$59 billion and equity of US$7.4 billion at December 2019. FirstRand Bank is 100% owned by FirstRand Limited (“the group”), a financial services company listed on the Johannesburg Stock Exchange (JSE) and Namibian Stock Exchange (NSX). The group employs approximately 49,867 people across ten countries throughout sub-Saharan Africa and FirstRand Bank has branches in London, India, and Guernsey.

Contact Information

PROJECT CONTACT INFORMATION
Not available at the time of disclosure

ACCESS TO INFORMATION
As part of FMO's ex-ante disclosure (disclosure of transactions before contracting), you can send requests or questions for additional information to: disclosure@fmo.nl

ACCOUNTABILITY MECHANISM OF FMO
Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW). A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at: https://www.fmo.nl/independent-complaints-mechanism