26 October 2017
The Development Bank of South Africa (DBSA), the government-owned institute that invests in development infrastructure domestically and across 13 other Southern African countries, will next month re-model itself as a Green Investment Bank, amid signs that a number of national development finance institutions (DFIs) are gearing up for environmental investing and to attract private investor capital.
Speaking at the OECD Forum 2017 for its Centre on Green Finance and Investment in Paris this week, Jonathan First, Head of Syndication Finance at DBSA, said that by the middle of next month, it will have received full permission to become a Green Investment Bank, which he said would be the first such dedicated environmental financing operation in a developing country.
On the same panel, Maria Paz Uribe Estrada, Head International Banking at Findeter, the Colombian Financial Institute for Development, said it had also been working with MDBs on a $2.7bn fund, which was adopting a strategy akin to a green bank and investing in areas like energy efficient street lighting. Maria said: “We are directing a lot of our strategies towards becoming a green bank with the support of the Coalition for Green Capital.”
The Coalition for Green Capital (CGC) is a New York-based non-profit that has helped create successful Green Banks in New York, Connecticut, Rhode Island, Montgomery County MD, and California. CGC also works internationally on the Green Bank concept.