Shoprite, South Africa’s largest retail company, present in 17 African countries, has secured a loan of $205 million from two big banks, Standard Bank and Rand Merchant Bank (RMB).
According to Shoprite, the company obtained green and sustainability loans to fund projects that fight global warming and achieve sustainability goals. As per the details of the loans, Shoprite got R2 billion or $176 million loan from Standard Bank, $47 million or R800 million in sustainability-linked loan, and R700 million or $l41.7 million green loan from Rand Merchant Bank.
Why Shoprite needs the loans
In the last financial year, Shoprite increased the capacity of its installed solar-power system by 82%; further disembarking from the use of electricity. Shoprite would use a part of the secured loans to improve its energy efficiency.
Also, Shoprite plans to complete more recycling projects from the recycling 46,102 tons of cardboard from stores and distribution centres and diverted 10,241 tons of plastic waste from landfills registered in the last financial year.
What you should know
Green and sustainability-linked loans are given to businesses and corporations to fund green projects that fight global warming, such as reducing emission of gases and achieving sustainability as determined by the lender.