The African Development Bank Group and Nedbank Group have signed a landmark financing agreement aimed at expanding access to affordable housing in South Africa while strengthening trade flows across the African continent.
The financing package brings together two complementary instruments: a ZAR 2.5 billion social bond investment in Nedbank Group Limited and a $60 million trade finance Risk Participation Agreement with Nedbank Limited.
Together, the initiatives are designed to address structural gaps in housing finance and trade finance—two areas viewed as critical to inclusive and sustainable economic growth.
The social bond, listed on the Johannesburg Stock Exchange, will be deployed through Nedbank’s Sustainable Finance Fundraising Framework. Proceeds will be directed toward affordable housing, with a specific focus on women and first-time homebuyers, as well as green-certified residential units.
The investment reinforces both institutions’ priorities around financial inclusion, gender equality and climate resilience, while supporting the African Development Bank’s broader vision for inclusive growth.
Kennedy Mbekeani, the African Development Bank’s Director General for Southern Africa, said the partnership marks an important milestone in the Bank’s nearly two-decade relationship with Nedbank.
He noted that the transaction will unlock much-needed financing for underserved communities while contributing to the resilience of South Africa’s financial system.
The second component of the agreement, a $60 million trade finance Risk Participation Agreement, will provide credit risk cover for Nedbank’s trade finance activities with local banks across Africa.
The facility will support documentary letters of credit and similar trade instruments, including in low-income countries and transition states. By sharing risk, the arrangement is expected to help narrow Africa’s trade finance gap and accelerate intra-African trade.
Nedbank Group Chief Executive Jason Quinn said the partnership supports the bank’s strategy of delivering measurable social and economic impact. He highlighted the dual focus on affordable housing and trade finance as a practical approach to unlocking inclusive growth and long-term development.
Ahmed Attout, the African Development Bank’s Director for Financial Sector Development, said the agreement builds on previous collaboration, including the Bank’s investment in Nedbank’s inaugural green bond in 2020. He added that the transaction demonstrates the Bank’s role in deepening local capital markets and addressing trade finance constraints.
The initiative aligns with the African Development Bank’s Ten-Year Strategy (2024–2033), which prioritises industrialisation, regional integration and improved quality of life across the continent.
Source: ADB