NDB is providing a loan to DBSA for on-lending to private sector sub-borrowers for the financing of infrastructure projects in South Africa (“Sub-Projects”) in multiple sectors, such as renewable energy, social infrastructure (including affordable housing, student accommodation, and private healthcare facilities) as well as digital infrastructure.

The Loan will be used by the Borrower to finance sustainable infrastructure projects in the areas of renewable energy, social and digital infrastructure in South Africa.

The Project will support socio-economic development in South Africa and will contribute to climate change mitigation, through increasing power generation capacity from renewable energy sources. The Project will also contribute to the development and improvement of existing health infrastructure and access to affordable and safe accommodation. The Project will also lead to improved digital connectivity through extended broadband networks and efficient telecommunication infrastructure across the country.

The Project will be implemented over a period of three years. DBSA will be responsible for identifying, selecting, appraising, financing, and monitoring Sub-Projects.

The Project has been categorized as Category FI-B in line with NDB’s Environmental and Social Framework. Environmental and social (“E&S”) impacts and risks of the Project will vary depending on the Sub-Projects. The negative impacts will be mitigated by adherence to DBSA’s Environmental Management System and country system, as well as the implementation of an Environmental and Social Impact Management Plan agreed upon with NDB. In the event any of the Sub-Projects are rated as DBSA Category 1 or NDB Category A, prior approval from NDB will be required.

NDB will provide a loan without sovereign guarantee to the national financial intermediary DBSA with an amount of USD 100 million. NDB will finance up to 80% of the Sub-Project’s total costs.