Bank Windhoek allocates N$185m to education from bond

Bank Windhoek, through its sustainability bond, has allocated N$185 million to education in 2024.

The bank’s third annual sustainability bond impact report released last week, showed that the bank has raised N$407 million since the first issue of the bond in 2021.

According to the bank’s chief treasurer, Claire Hobbs, the bond’s first tranche was issued in June 2021 raising N$227 million, while the second tranche was issued in December 2021, raising N$180 million.

“As a result, a total of N$407 million was raised for the inaugural issuance of the Bank Windhoek sustainability bond,” says Hobbs.

In 2022, the bank allocated N$124 million, N$58 million in 2023, and N$225 million in 2024.

Sustainability bonds are a type of investment security where the proceeds are specifically allocated to finance or refinance projects that have a positive environmental or social impact.

Education received the highest allocation, followed by agriculture with N$25 million, and renewable energy with N$12 million.

Sustainable water and waste management received N$425 000, clean transportation received N$127 000 and sustainable agriculture N$2 million.

Hobbs says the bonds were issued to achieve the United Nations Sustainable Development Goals (SDGs) and this was the final edition for the bonds.

“It highlights the bank’s contribution to achieving SDGs, reducing environmental impact and promoting social responsibility through its mandate as a financial services provider,” says Hobbs

She adds that through the bond allocation, the bank has a funding gap in the economy targeting the environment.

“In this journey, we have discovered the need that exists within the Namibian economy for more funding dedicated to creating impact and the significance of ensuring there is a dedicated financial solution that targets explicitly creating effects within the economy, environment, and community,” she says.

Hobbs says the bank will continue to offer its sustainability loan which was developed from the sustainability bond.

She says the bond has matured into an offering clients can access to achieve their sustainability goals and ambitions.

“The sustainability bond is one of the products that we will continue offering to the market, ensuring we continue to leverage on our mandate to create positive change,” says Hobbs.

The data in the report was based on estimates provided by installers and the clients the bank funds to execute financially feasible projects, says Hobbs.