ICBC funds South African renewable energy projects

China’s largest bank signs US$2 billion financing agreement.

Johannesburg-based Standard Bank Group Ltd. is one of Africa's largest lenders by assets. The agreement with Industrial & Commercial Bank of China Ltd., which is a 20% shareholder in Standard Bank, will expand its role in the renewable energy sector.

South Africa is holding a series of tenders primarily for wind and solar energy projects. It wants to broaden its energy mix still heavily dependent on aging coal-fired power stations. By 2030, South Africa aims to have renewable energy account for 8% of its total energy output from less than 1% now.

"ICBC is...certainly interested in raising awareness of the South African investment opportunity among Chinese suppliers as potential sources of contracting capability," said ICBC Chairman Jiang Jianqing.

"The objective of this partnership is to facilitate the entry of investors into South Africa, and ICBC is excited about the opportunity to co-lend into renewable energy with Standard Bank."