FirstRand Bank Limited
Status: Approved investmentWhy disclosure?
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In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer?
FirstRand Bank Limited (FRB) is a licensed banking entity in South Africa and forms part of FirstRand Limited, a financial services holding company listed on the Johannesburg and Namibian Stock Exchanges. FRB operates as one of the largest banks in South Africa, providing retail, commercial, corporate, and investment banking services through its divisions First National Bank (FNB), Rand Merchant Bank (RMB), and WesBank.
What is our funding objective?
FMO provides a USD 100 million senior term loan as part of a USD 300 million syndicated Friendship Facility arranged by DEG, alongside Proparco. The funding is fully allocated to renewable energy projects in South Africa. The facility is 100% Green-labeled.
Why do we fund this investment?
This transaction aligns with FMO’s strategic goals to promote climate action and inclusive economic growth in Sub-Saharan Africa. By partnering with FRB, a key account with strong governance and ESG standards, FMO strengthens its long-standing relationship with one of the region’s most influential financial institutions. The investment will support renewable energy projects that create jobs, enhance resilience, and accelerate South Africa’s transition to sustainable energy. It also reinforces collaboration with other development finance institutions under the Friendship Facility framework.
What is the Environmental and Social categorization rationale?
FRB is categorized as Category A (FI) under FMO’s Environmental and Social (E&S) risk framework because FRB’s portfolio includes exposure to sectors with potential high E&S risks, representing approximately 12% of its total loan book. The high E&S risk portfolio can mainly be found in the RMB business line, which represents the bank’s activities in the corporate and investment banking segments in South Africa, the African continent, and India. High E&S risk corporate client sector exposures include the chemical industry, upstream oil and gas, mining, and agribusiness. FRB has a well-functioning Environmental and Social Management System (ESMS), which is broadly aligned with EDFI Harmonized E&S Requirements (including incorporation of applicable IFC Performance Standards) and operated by a team of E&S professionals. FirstRand Bank is a frontrunner in sustainability on the continent. The bank has been a signatory to the Equator Principles since 2009 and a founding member of the development of the Principles for Responsible Banking.
More investments
| Date | Total FMO financing |
|---|---|
| 11/21/2023 | USD 50.00 MLN |
| 7/9/2025 | USD 75.00 MLN |
| 11/15/2018 | USD 50.00 MLN |
- Website customer/investment
- https://www.firstrand.co.za/
- Region
- Africa
- Country
- South Africa
- Sector
- Financial Institutions
- Publication date
- 1/8/2026
- Effective date
- 11/27/2025
- Total FMO financing
- USD 100.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - A