Rand Merchant Bank Nigeria Limited has a multi-disciplinary Sustainable Finance team dedicated to helping firms achieve their climate commitments and sustainability strategy.
ESG Advisory
RMB Nigeria’s advisory services cover various aspects of the capital spectrum. In terms of debt funding, it focuses on establishing funding frameworks, offering guidance on sustainable finance solutions, and developing client transition plans that promote decarbonisation and long-term social and economic sustainability.
Offerings also include alignment with Development Financial Institutions (DFIs) and commercial banks committed to the Equator Principles and IFC Performance Standards.
Solutions related to equity funding include helping firms ensure their sustainability strategy is effectively communicated and positioned with equity investors. RMB Nigeria also analyses how ESG risks and opportunities are reflected in firms ESG ratings, providing a consolidated view through normalising methodologies to support firms in raising the necessary capital for their sustainability objectives.
Impact Solutions
With global climate funding currently supporting natural projects, there is a chance to leverage instruments such as impact bonds, debt-for-nature swaps, mixed financing, and biodiversity credits.
These can help address firm’s sustainability goals, especially as companies increasingly need to address and disclose their environmental and social impact.
Recognising the urgent need for directing funds towards social challenges and creating positive social changes, RMB Nigeria focuses on collaborating with firms using instruments like impact bonds and blended finance structures to achieve positive social impact. Working closely with firms, RMB Nigeria designs contextually relevant solutions that prioritise the achievement and measurement of positive social outcomes.
Performance-Linked Solutions
Performance-linked Solutions are designed to incentivise sustainability initiatives and have a broad application across general corporate purposes.
Specifically crafted to assist firms in the achievement of clearly defined ambitious green, social or sustainability goals that make a meaningful impact, RMB Nigeria’s sustainability-linked solutions are aligned with international guidelines and market best practices and extend beyond debt solutions to include derivatives and transactional banking.
Transition Solutions
These include transition loans and bonds (use of proceeds or performance-linked format), aligned to established sustainable finance standards and taxonomies. RMB Nigeria’s transition solutions are structured around climate mitigation, decarbonisation and social inclusivity, which supports the just aspect of the transition.
Use of Proceeds Solutions
RMB Nigeria has developed a comprehensive range of Use of Proceeds Solutions designed to finance and/or refinance firms sustainability initiatives.
These specialised Use of Proceeds offerings are aligned with international guidelines and market best practices for firms that have or intend to prioritise green, social or sustainability objectives.
The Use of Proceeds Solutions extends beyond debt solutions to include green and social investment solutions and sustainable trade finance offerings.
RMB Nigeria Balance Sheet
Rand Merchant Bank Nigeria balance sheet registered at N621.7 billion (USD691.3 million), accounting for 31.8%, 18.2% and 22.8% of the merchant banking sub-sectors’ total assets, loans and customer’s deposits, respectively as at financial year ended 31 December 2023.
Rand Merchant Bank Nigeria Limited has strong support from the parent, FirstRand Group Limited, one of the largest financial services groups in Africa, with total assets of USD127.1 billion as of 31 December 2023.
Rand Merchant Bank is a key player within the Nigerian merchant banking sub-sector, offering merchant banking and other financial services to corporate clients.
The bank’s franchise strength is buoyed by its membership of the FirstRand Group that provides a global platform to deliver various products and services to the bank’s customers as well as technical and financial support.
The parent (FirstRand Group) has committed to inject N32 billion into the bank on or before March 2026 in line with Central Bank of Nigeria’s (CBN) recapitalisation directive for all banks.
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