IDC to set up R5bn green funding initiative

A R5bn domestic green economy tax exempt initiative will be started up by the Industrial Development Corporation (IDC), Economic Development Minister Ebrahim Patel has said.

He told Parliament during his budget vote speech that a form of “green bond” will be taken up by the Public Investment Corporation (PIC) with 14-year tenure “to raise the resources to invest actively in the green economy”.

He also said that IDC would divest a number shares from its holdings in listed and unlisted companies and, according to a SAPA report minister Patel told journalists afterwards,   “The divestment from mature investments is very much part of the IDC’s business model”.

The department’s financial was quoted in the interview as saying that the value of the IDC’s shares in listed companies was in excess of R50bn, “while in unlisted companies it was “north” of R30bn” but that IDC would keep its stake in Sasol and the iron ore company Kumba.

PIC’s move towards creating the green fund initiative would be commenced shortly, minister Patel said.

 

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