Absa Group Ltd. will get a 2 billion rand ($124 million) loan from the International Finance Corp. to help South Africa’s third-largest bank by assets expand its affordable-mortgage business.
IFC’s first social-sector loan in South Africa is targeted at lower to middle-income households, Adamou Labara, the lender’s country head, said in a statement.
The loan complies with the Social Loan Principles published by the Loan Market Association, which aims to establish best market practices for syndicated loans in Europe, the Middle East and Africa. Such a loan finances projects that address key social issues, including a lack of access to affordable basic infrastructures like energy, clean water and housing.
Absa in March announced plans to fund 100 billion rands of new environmental, social and governance-related products by 2025, more than doubling its book of 47 billion rands.
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