RMB Botswana and Barloworld pave the way with innovative green building loan
On Thursday 11 April 2024, RMB Botswana, hosted stakeholders at the Botswana Stock Exchange (BSE) Bell Ringing Ceremony. The occasion marked the celebration of a significant green and sustainable financing deal with Barloworld Equipment Botswana. Through this deal, RMB leveraged its robust solutionist capabilities to provide advisory services and financing of a 5-year Green Building Loan. Barloworld, in turn, benefited from RMB’s expertise as the Sole Arranger and Lender.
This landmark deal represents a first for the Botswana market, as it supports the construction of a new Head Office building in Phakalane. Notably, the project incorporates cutting-edge sustainability features and has achieved impressive sustainability certifications. Among these is the EDGE Advanced Certification (Preliminary Certification), with impressive statistics such as 51% Energy Efficiency, 29% Water Savings, and 31% Less Embodied Energy in Materials.
During the ceremony, RMB Acting Director, Ms Harriet Mlalazi stated, “Sustainability is drenched in our 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 upskilling our people to ensure that we understand and are invested in providing bespoke sustainable finance solutions.”
Continuing this sustainability journey, RMB recently played a pivotal role in a groundbreaking Solar PV transaction. Serving as a Senior Lender, Hedging Bank, and Account Bank, RMB provided 50% of the debt funding and BWP 405 million in facilities. This financing facilitated the development of a new 60MW plant in Mmadinare by Selebi-Phikwe Solar (Pty) Ltd, a 100% owned subsidiary of Scatec ASA. Under a 25-year Power Purchase Agreement, Scatec will supply 100% of the power produced by the project to Botswana Power Corporation (BPC). This landmark initiative represents Botswana’s first large-scale utility renewable energy project and aligns with the government’s commitment to achieving a 30% shift in the energy mix by 2030.
The facilitation of these projects underscores RMB Botswana’s commitment to sustainability, a position evidenced by its business practices and product offerings. The Bank plays a critical role in empowering corporates to achieve sustainability by ways of crafting suitable financial solutions. These solutions not only prioritise profitability but also actively promote consideration of the environmental and social impact of business operations.
RMB Botswana remains steadfast in its pursuit of ESG initiatives. This focus has gained prominence globally as a central theme in corporate financing. Consequently, discussions center around how corporates can contribute to mitigating the adverse effects of climate change. RMB Botswana actively encourages sustainable and eco-friendly practices that accelerate the adoption of ESG principles.
