JSE-listed automotive company Motus Holdings confirmed on Tuesday that it has secured an environmental, social and governance (ESG) funding facility worth R6 billion from Standard Bank South Africa, together with a working capital facility of R800 million.
“This ground-breaking ZAR-denominated ESG facility will enable the next phase of Motus’ ESG journey. It will focus on the fuel used by group vehicles, water and electricity consumption, as well as gender equality to drive diversity and inclusion,” the group said.
“Sustainability-linked facilities tie the terms of funding to ESG outcomes to support and incentivise responsible corporate behaviour and the creation of shared value. As Motus achieves its key performance indicators [KPIs], it receives an incentive in the form of a favourable interest rate benefit and vice versa should it not achieve its KPIs,” it explained.
Motus believes the ESG facility in South Africa, which comes after the group secured international ESG-linked facilities two years ago, reaffirms its ongoing pledge to ESG principles and outcomes.
Motus secured a sustainability-linked loan of £120 million (over R2 billion) in January 2020 for a three-year facility targeting fuel and water consumption.
Motus CEO Osman Arbee said in a statement on Tuesday that the company is working on reducing carbon emissions and contributing towards social change to ensure a better, more sustainable business.
“We are pleased to be able to work with partners who have developed innovative products to integrate our sustainability values with responsible capital market participants.”
Standard Bank SA CEO Lungisa Fuzile says the financial institution is focused on providing financial products and services that support ESG outcomes, including green and social bonds, sustainability-linked loans and bonds, sustainable trade and working capital solutions, and impact investing.
“Our partnership with Motus affirms our commitment to mobilise between R250 billion and R300 billion in sustainable finance by the end of 2026,” adds Fuzile.
“We are therefore delighted and proud to partner with Motus in supporting their growth ambitions while also contributing to transformation in our economy.”
Arbee says the company’s commitment to ESG practices and principles will ensure that it remains a sustainable and valuable contributor to customers, employees, supply chain partners and communities.
Nondumiso Lehutso is a Moneyweb intern.