(Bloomberg) -- The World Bank’s private investment arm will provide a $250 million loan to South African lender FirstRand Ltd. to help boost loans for green buildings.

The funding comprises an International Finance Corp. loan of as much as $200 million and up to $50 million from the Managed Co-Lending Portfolio Program, an IFC syndications platform for institutional investors, the firms said in a joint statement on Monday. Part of the funds will be specifically allocated to the affordable-housing segment and to women, they said. 

“IFC’s partnership with FirstRand will not only provide vital funding for access to housing but also expand green-certified construction loans and home mortgages in South Africa, helping the housing sector become more climate friendly and resilient,” IFC Regional Director for Southern Africa Cláudia Conceição said in an emailed note. 

As part of the deal, IFC will provide capacity building to FirstRand’s appraisers, loan officers and internal teams, and to its construction partners, and advise on the bank’s product development. The funding will buoy the country’s efforts to reduce greenhouse gas emissions by 42% by 2025, with green buildings designated as a major part of the solution to meeting that target.

©2024 Bloomberg L.P.