Sustainable Finance

Standard Bank Provides R6.8 Billion in Sustainability-Related Financing to Motus

Published on: 29 June 2022
by KnowESG
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Motus Holdings has secured a syndicated R6 billion sustainability-linked credit from Standard Bank, as well as an R800 million sustainability-linked working capital facility.

This environmental, social, and governance (ESG) facility denominated in South African rand will enable the next chapter of Motus' ESG journey. The company will focus on the fuel used in group vehicles, the group’s water and electricity consumption, as well as gender equality to drive diversity and inclusion.

Motus CEO Osman Arbee said: 

"We are pleased to be able to work with partners who have developed innovative products to integrate our sustainability values with responsible capital market participants. Our commitment to the targets recognises our ongoing investment and evolution to ensure that we reduce carbon emissions and contribute to social challenges to ensure a better and more sustainable business."

Sustainability-linked facilities link financing conditions to ESG outcomes to encourage and incentivise responsible corporate behaviour and the production of shared value. As Motus meets its key performance indicators (KPIs), it receives an incentive in the form of a preferential interest rate, and vice versa if it fails to meet its KPIs.

“As we enter our seventy-fifth year of operations, our commitment to ESG practices and principles, will ensure we remain a sustainable and valuable contributor to our customers, employees, supply chain partners and the communities in which we operate,” said Arbee.

Standard Bank South Africa CEO Lungisa Fuzile, said: 

"Standard Bank is focused, primarily through its Sustainable Finance division, on providing financial products and services that support positive ESG outcomes, including green and social bonds, sustainability-linked loans and bonds, sustainable trade and working capital solutions and impact investing."

“Our partnership with Motus affirms our commitment to mobilise between R250-billion and R300-billion in sustainable finance by the end of 2026. We are, therefore, delighted and proud to partner with Motus in supporting their growth ambitions while also contributing to transformation in our economy,” he said.

Source: Engineering News

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