DEALS Facilitating Sustainable Growth Absa | Corporate and Investment Banking > Insights and Events > Facilitating Sustainable Growth SHARE We are pleased to have acted as Sole Lead Arranger and Sole Sustainability Coordinator for Sappi Limited’s R1.5 Billion sustainability-linked issuance facility. Sappi Limited (“Sappi”), along with its subsidiaries, engages in the provision of materials made from wood fiber-based renewable resources in Europe, North America, and South Africa. The company manufactures and sells pulp, paper and packaging products. It also provides biomaterials, such as valida, lignin, furfural, and sweeteners, as well as forestry products. The company was founded in 1936 and is headquartered in Johannesburg, South Africa. This issuance is the first sustainability-linked facility in the packaging and paper industry in South Africa, the largest sustainability-linked issuance in the South African bond market to date, and the only sustainability-linked issuance in South Africa with only upward margin ratchets. This issuance positions Sappi as a leader in climate action, and their transparent reporting sets a precedent for peers and drives the sustainability agenda within the sector. The Key Performance Indicators identified for this issuance will focus on reducing Sappi’s global GHG emissions and increasing the Sourcing of Certified Fibre supplied to Sappi’s mills in South Africa. These KPIs will enable Sappi’s focus on transitioning its operations to carbon neutrality and supporting small-scale farmers in its value chain, further enhancing the socio-economic landscape in South Africa. This deal reflects Absa's commitment to client growth in line with sustainability best practice. Completion of this transaction was driven by the passion of Absa team’s understanding of Sappi’s long and short-term needs. The process was managed diligently, structuring and negotiating the best outcomes while mobilizing strong investor interest. The orderbook attracted more liquidity than any other corporate auction in 2024 to date and achieved an overall subscription rate of over 4x. Furthermore, Absa's sustainability expertise, going just beyond capital raising, aligned the issuance with best practice and demonstrated that by partnering with our clients, we are able to achieve outstanding results. Contact Marcus Veller for more information https://cib.absa.africa/wp-content/uploads/2020/07/file_example_MP3_700KB.mp3 Related Articles DEALS Reviving Africa’s Trade Finance, Demands Bold DFI-Bank Partnerships A Nigerian manufacturer, eager to tap into new markets across West Africa, secures buyers in Côte d'Ivoire and Ghana. Yet, despite the strength of these opportunities, the company encounters a formidable roadblock: the inability to access the requisite trade finance to execute its cross-border deals. Read more DEALS We are pleased to have overseen the USD 50m Structured Finance Deal to boost Africa’s agricultural trade We are pleased to announce our role as the lead bank in a USD 50 million Structured Inventory Finance Facility for Valency International DMCC. This facility, secured in partnership with International Finance Corporation (IFC), positions Valency at the centre of sourcing, processing and exporting agricultural goods from East and West Africa to international markets. Read more DEALS Breaking new ground for meaningful impact through mining Absa’s balance sheet commitment will ensure Gamsberg Mine is ranked among the top five zinc-producing mines globally and will help BMM create jobs and improve economic activity in the region. We are invested in your story and invite you to write it with us. Read more
