The Development Bank of Namibia’s (DBN’s) Sustainable Finance Framework is aligned with the four core components of the International Capital Market Association’s (ICMA) Green Bond Principles 2021, Social Bond Principles 2021, Sustainability Bond Guidelines 2021, as well as the Loan Market Association’s (LMA) Green Loan Principles 2023 and Social Loan Principles 2023.
The framework has seven green categories that aim to achieve the environmental objectives of climate change mitigation, sustainable use and protection of water and marine
resources, protection and restoration of biodiversity and ecosystems and four social categories, which aim to achieve the social objectives of raising living standards, increasing social inclusion, and improving access to essential healthcare and education.
DBN has obtained a Second Party Opinion (SPO) from S&P Global Ratings (the SPO report, available at www.spglobal.com/ratings), which assessed that the framework is aligned with the category principles.
The framework received a strong alignment score across the Use of
Proceeds section, given a clear description of eligible categories and sustainability objectives, as well as the reporting
section, given DBN will report both the expected and achieved environmental and social impacts of financed projects via the engagement of an external
reviewer.
DBN CEO Martin Inkumbi said, as a bank, DBN has a strong ambition to become the go-to ESG (environmental, social and governance) bank in Namibia.
The launch of the board-approved Sustainable Finance Framework (SFF) is an important milestone for DBN’s sustainability journey. The launch is in advance of a planned debut of sustainable bond issuance in the second half of 2023, Inkumbi noted.
The SFF, which is available on DBN’s website, will serve as a reference for all green, social or sustainability bonds, loans and other debt instruments issued by DBN in the local or international capital markets to fund the bank’s investments in eligible ESG projects.