Vukile Property Fund (JSE: VKE), a leading retail REIT, has concluded a five-year R200m use-of-proceeds Green Loan with Nedbank CIB, which will fund 19 solar energy projects and energy-efficiency initiatives across South Africa.
The loan will fund seven recently installed solar energy projects of R60m. In addition, it will be used for eight solar farm installations underway or soon to commence at Vukile’s retail properties, together with four future solar projects, all scheduled for completion in the next 36 months at a combined R140m.
Laurence Rapp, CEO of Vukile Property Fund, says, “We are pleased to extend our relationship with Nedbank CIB through our first Green Loan, which marks a significant milestone in our sustainability journey. It is a testament to the positive environmental action and impact embedded in Vukile’s business operations and planning. This funding will be dedicated to new on-site solar farms at retail property assets, supporting their energy-efficient and cost-efficient operations, and helping to meet the needs of our retailer tenants and shopping centres’ customers, while reducing climate impact.”
Arvana Singh, Head of Sustainable Finance Solutions at Nedbank CIB, comments, “We are proud to partner with Vukile Property Fund to structure its first Green Loan to fund solar projects and energy efficiency initiatives. Through our property finance and sustainable finance expertise we are creating innovative solutions for our clients to tap into and progress on their sustainability journeys.”
Singh adds, “More than just a means of funding property projects, Vukile’s new Green Loan underscores the green built environment ethos that Vukile and Nedbank share.”
To date, Vukile has installed 14.2 MWp in solar photovoltaic (PV) power systems through 21 different projects, providing 10% of electricity consumed across Vukile’s portfolio through sustainable energy and decreasing Vukile’s carbon footprint by about 20,500 tons of CO2.
Vukile plans to install another 7.4 MWp of solar by end-March 2023, creating an additional 5% of the portfolio’s electricity consumption through sustainable energy and further reducing its environmental impact. Rapp adds “Vukile is committed to environmentally responsible investing and doubling its electricity consumption from sustainable energy projects over the next three years.”
