Page 28 - Energize June 2022

NEWS

New green power projects signed

tandard Bank, mandated lead arranger and underwriter, has successfully supported
three new independent electricity generation projects signed into Government’s
S2000 MW Risk Mitigation Independent Power Producer Procurement Programme
(RMIPPPP), together with British International Investment; this allowing the bank to play a
leading role in delivering renewable power to the grid and supporting South Africa’s drive to
energy security.
Since the programme’s inception in 2020, when it was gazetted by the Minster of Mineral
Resources and Energy to alleviate the country’s power constraints, the bank has supported
clients, Scatec and H1 Holdings, bringing three projects valued at over R16-billion to fruition.
These renewable solar and battery storage projects will each target 50 MW of dispatchable
generation capacity. Stephen Barnes
The projects are aligned to Standard Bank Group’s Environmental, Social and Governance
(ESG) framework, which was captured in the launch of its Climate Policy in March this year. on the Johannesburg Stock Exchange, with
In the policy, Standard Bank commits to achieving net-zero carbon emissions from its own share code SBK, and the Namibian Stock
operations for newly built facilities by 2030, for existing facilities by 2040, and in its portfolio Exchange, share code SNB.
of financed emissions by 2050. Standard Bank has a 159-year history
Standard Bank Group will also mobilise a cumulative amount of between R250-billion in South Africa and started building a
and R300-billion for sustainable finance by the end of 2026. This target includes R50-billion franchise outside southern Africa in the
of financing for renewable energy and underwriting of a further R15-billion for renewable early 1990s.
energy by the end of 2024. Our strategic position, which enables
“As a proudly African financial services provider and corporate citizen, we are deeply us to connect Africa to other select
honoured to be able to contribute to the Government’s mission to bolster supply of new emerging markets as well as pools of
generation capacity,” says Stephen Barnes, Global Head of Power and Infrastructure for capital in developed markets, and our
Standard Bank Group. “This is not only about ensuring a reliable supply of power to citizens balanced portfolio of businesses, provide
and a growing economy, but also in ensuring that we meet our obligations as a nation to significant opportunities for growth.
reduce carbon emissions.” The group has over 46 000 employees
“It is an especially significant responsibility for Standard Bank to be entrusted with excluding Liberty, more than 1143
financing these projects, delivering new generation capacity. Even as we assist the country’s branches and over 6600 ATMs on the
developmental needs, we will continue to support our long-standing clients in ensuring that African continent, enabling it to deliver
they meet their fiduciary and regulatory requirements to the highest standard,” Barnes says. a complete range of services across
Given South Africa’s constrained supply within the context of ageing infrastructure personal and business banking, corporate
combined with the continued need for maintenance and subsequent drive to increase and investment banking and wealth
electricity supply, we welcome this milestone as a step forward. With peak demand reaching management.
winter highs there is a continued shortfall anticipated, and the country has set out ambitious Standard Bank Group Limited (SBG or
targets to meet this demand, while also boosting the rollout of renewables through its group) headline earnings for the twelve
Integrated Resource Plan and RMIPPPP. months to 31 December 2021 (FY21)
This programme is unique in that it allows for base load power to be delivered to the was R25-billion, return on equity (ROE)
grid. The clients that Standard Bank have supported, facilitate the further development of was 13,5%. Standard Bank’s market
sustainable energy solutions for South Africa by combining renewable energy solutions with capitalisation as of 31 December 2021 was
battery storage, reducing South Africa’s reliance on carbon intensive coal and diesel power R228-billion.
plants for dispatchable power. These will be amongst the first of such projects financed in The group’s largest shareholder is the
South Africa and the largest hybrid projects completed on the African continent. Industrial and Commercial Bank of China
“It is very exciting to not only witness, but to be a part of significant competition and (ICBC), the world’s largest bank, with a
diversity in the South African power generation sector,” says Barnes. “We are confident that 20.1% shareholding. In addition, Standard
these additional projects will create the necessary momentum to shift the country’s reliance Bank Group and ICBC share a strategic
from carbon-based fuels towards sustainable energy, creating new green jobs and technical partnership that facilitates trade and deal
expertise in the sector.” flow between Africa, China and select
emerging markets.
About Standard Bank Group
Standard Bank Group is the largest African bank by assets, operating in 20 African countries For further information, please visit
and 5 global financial centres. Headquartered in Johannesburg, South Africa, we are listed http://www.standardbank.com

energize | June 2022 | 26