RMB Advises FirstRand on Landmark R2.6bn British International Investment Transition Finance Facility

Media Release

26 November 2025

RMB Advises FirstRand on Landmark R2.6bn British International Investment Transition Finance Facility

Johannesburg– Rand Merchant Bank (RMB) today announced its successful role as the exclusive Transition Finance Advisor to FirstRand in securing a landmark $150 million (R2.6bn) facility from British International Investment (BII), the UK’s development finance institution (DFI) and impact investor.

This pivotal financing, which was announced on 25 November, is dedicated to funding eligible transition loans across South Africa and the broader African continent, directly supporting the decarbonisation of hard-to-abate sectors, such as industrials, energy and cement.

The transaction represents a significant step in mobilising international capital for Africa's climate goals and underscores the commitment of both institutions in driving the Energy Transition.

Emrie Brown, CEO at RMB, commented on the strategic importance of the deal:

"This $150 million facility is a blueprint for how private and development finance can collaborate to enable the Energy Transition in emerging markets. RMB’s advisory role confirms our expertise in structuring and our vision to bring global solutions to solve for African challenges.”

“By designing a Moody’s Ratings -validated Transition Finance Framework (TFF), serving as the governance blueprint for how the funds will be allocated to projects that facilitate material emissions reductions, RMB is directly contributing to our ambition to facilitate a total of R450 billion of sustainable and transition finance by 2030, including the R200 billion already achieved to date. This solidifies our leadership in creating the necessary financial tools for Africa's Transition."

Significance for Africa’s Climate Ambitions

The closure of this facility, the first of its kind for Africa, addresses the urgent need for climate finance across the continent.

With the Climate Policy Initiative estimating that approximately $2.8 trillion will be required between 2020 and 2030 to meet Africa’s climate prevention targets, financing the transition is crucial.

Transition finance is specifically designed to support sectors where full "green" alternatives are not yet technically or commercially viable, enabling companies to embark on credible decarbonisation pathways.

This deal will further unlock dedicated international funding, enabling greater mobilisation of private capital for energy transitions in emerging markets and developing economies (EMDEs).

RMB’s Role in Pioneering Structure

RMB’s Sustainable Finance team played a critical role in in designing the TFF, supporting underlying deal execution and unlocking funding opportunities for African clients. The framework aligns with country platforms or national investment plans, to support B20's emphasis on effective local deployment across African nations.

RMB worked closely with BII’s technical teams to rigorously evaluate the potential project pipeline, ensuring the eligibility of projects for facility allocation and enabling immediate and effective deployment of the capital.

This unique approach, which leveraged the Transition Finance Africa – Practitioners’ Guide produced by BII and partners, significantly enhanced the framework's credibility and capacity to attract crucial DFI capital. It also supports adaptation finance by allowing resilience-related investments where they are relevant to decarbonisation efforts and ensures compatibility with emerging carbon market frameworks and monitoring, reporting, and verification (MRV) systems for robust oversight.

This framework was instrumental in the transaction's success, achieving a Second Party Opinion (SPO) from Moody’s Ratings and aligns with global guidelines developed by the Loan Market Association (LMA) Transition Loan Task Force and the International Capital Market Association (ICMA) Climate Transition Finance Working Group. It provides eligibility criteria for transition instruments and activities, ensuring funds drive material emissions reductions. This links the framework to enhanced investor confidence and provides greater certainty and predictability for future funding. RMB is an active participant in several global bodies thus the framework was developed using best-in-class global insights.

ENDS