DCM IDC

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The proposed project is an IFC subscription of up to ZAR 2 billion (~US$107 million) to a series of 7-year and 10-year senior unsecured bonds to be issued by the Industrial Development Corporation (IDC or the Corporation) under IDC's domestic medium-term note (DMTN) Program and approved Sustainable Bond Framework, including Sustainability, Green, Social and Transition Bonds. IFC's subscription will be done over several issuances (the Project).As outlined in IDC’s Sustainable Bond Framework, the Corporation has developed a ‘Pathways for Sustainable Industrial Development Framework’ to guide its approach in expanding industrial capacity in a socially inclusive and environmentally responsible manner.IFC's investment will support the issuance of IDC's first-ever sustainability bond under the IDC’s Sustainable Bond Framework aligned with the International Capital Market Association (ICMA) Principles, including the Sustainable Bond Guidelines, Green Bond Principles, and Social Bond Principles. Additionally, the framework incorporates guidance from the Climate Transition Finance Handbook, which may be applied to Green, Social, Sustainability, and Sustainability-Linked Bonds. The inaugural Sustainability bond will be listed on the Johannesburg Stock Exchange (JSE) in the Sustainability segment. IFC's participation will help underpin IDC's strategic priorities in sustainability linked financing.The IFC proceeds from the Sustainability Bond issue will be allocated in line with IDC’s Sustainable Bond Framework and eligibility criteria, supporting a range of eligible green and social projects. In line with these criteria, IFC’s proceeds will specifically contribute to MSME financing and small-scale solar projects under 5 megawatts, reinforcing the commitment to sustainable and inclusive development. The allocation of proceeds for all investors, including IFC, specifically related to MSMEs (such as women- and youth-owned businesses) and small-scale solar projects under 5 megawatts, will be disclosed in relevant reports as outlined in IDC’s Sustainable Bond Framework