Category Banking

Nedbank Retail and Green Savings Bonds generate R8 billion savings

15 August 2013 Nedbank

Nedbank revealed that its innovative Retail and Green Savings Bonds had generated savings of R8 billion in just over 2 years. This follows the announcement of the Nedbank Group Interim Results for the six months ended 30 June 2013, which saw its retail bu

Launched in 2012, the Nedbank Green Savings Bond is the first bond to enable the South African population the opportunity to contribute towards the creation and development of the green economy, while saving for their future. As such, the capital raised from this bond is channelled towards the financing of renewable projects in South Africa – at no cost to the investors.

‘We are delighted to see the growth in Nedbank Green and Retail Savings Bonds. These recent innovations allow our clients additional savings opportunities, contributing towards increased awareness of the importance of savings. Getting on top of our individual financial affairs is so important. It is something we are committed to helping our clients with,’ says Anton de Wet: Managing Executive of Client Engagement at Nedbank.

True to its accolades of sustainability, the green bond in particular, has championed a new path to saving while helping preserve the environment, and indirectly injecting growth to the SMEs operating in this sector. De Wet emphasised that the bond reflected Nedbank’s ethos of “doing good and giving back” as the bank continues on its more than 20 year journey in caring for the environment. The Green Affinity Programme is instrumental to this journey epitomising a partnership between Nedbank and its clients for a greener future.

In South Africa, the green bonds universe is still in its infancy and the government has enthusiastically adopted renewable energy as a platform, both to meet its international commitments to reduce greenhouse gas emissions as well as a way of developing a sustainable energy policy.

‘The Green Savings Bond presents a hard investment case in that investors now have the opportunity to play a significant role in not only lowering the risk of climate change, but also investing in a sustainable solution. The important message investors need to hear is that backing green investments do not mean compromising on returns,’ said Mike Peo: Head of Infrastructure, Energy and Telecoms at Nedbank Capital.

Peo also noted that Ebrahim Patel, South Africa’s Minister of Economic Development, had placed “greening the economy” at the forefront of the fight against unemployment, having estimated that it could create as many as 462 000 jobs by 2025.

An analysis of the profile of the Nedbank Retail and Green Savings Bonds investors revealed that:

· a dominant 80% of the book was accounted for by savers in excess of 40 years old;

· over 13% of the investors are between the ages of 20 to 39, with 7% under 19 - reflecting a positive shift in saving among the youth.

· Gauteng and Kwazulu-Natal Provinces accounted for more approximately 50% of the book; and

· over 20% of the investors are new to Nedbank.

‘Seeing such a good response to this innovative offering is great. It allows individuals to be able to participate in funding SA's investment in renewable energy projects, at no risk to themselves. So, not only will these clients be investing in their own financial futures but also a more sustainable planet. We like to think of this as investing in a brighter and greener tomorrow. In addition to these innovations, we have also launched MyFinancialLife™ a secure, online personal financial management tool and MyMoneyMap™, a similar online tool allowing parents and children to manage their pocket money (allowance) wisely. Here too it's an investment into our future. Only this time, investing into the early financial literacy of our youth,’ concludes de Wet.

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