The International Finance Corporation (IFC) enabled South African green building growth by giving $250 million to Standard Bank for an unsecured senior loan. Standard Bank and IFC formed this partnership to promote eco-friendly building methods in South African properties and provide green homes to people who cannot afford them.
Through this funding, Standard Bank will provide loans to real estate developers and customers who purchase certified environmentally friendly buildings. The finance program backs buildings that receive official certification from IFC’s EDGE program plus other standard systems for saving energy, water, and natural resources. The funds will aid both women homebuyers through individual loans and facilitate cost-effective residences through new homebuilding projects using $75 million of these available resources.
South Africa’s property market has room for strong expansion as more people move to cities creating an unmatched need for energy-efficient housing projects.
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Under this partnership Borrowers who receive funding from the Market Accelerator for Green Construction program can receive $4.8 million through a performance-based initiative to help cover green building certification expenses. Standard Bank Group and IFC forged this collaboration as IFC extended its South African investment activities to $5.2 billion across five years which ranks it number one for Africa and number five worldwide.
