Firstrand Limited · JSE:FSR
Firstrand — Debt Investor Presentation (April 2024)
30 slides from Firstrand's debt investor presentation, April 2024
Slide 1: Green bond investor roadshow
Green bond investor roadshow April 2024
Slide 2: Agenda
2 Agenda • Group's climate approach • FRB’s second green bond issuance • RMB green solutions and track record • Term sheet • Appendix
Slide 3: Group's climate approach
Group’s climate approach FirstRand
Slide 4: FirstRand considers climate change as both a risk and opportunity
4 FirstRand considers climate change as both a risk and opportunity • FirstRand believes climate change is a challenge globally • As a systemic bank and allocator of financial resources, the group must deliver solutions for climate resilience and a just transition • All sectors and segments will be
Slide 5: … and considers both financial and impact materiality
5 … and considers both financial and impact materiality
Slide 6: Climate strategy: focus is client and balance sheet driven
6 Climate strategy: focus is client and balance sheet driven CLIMATE BALANCE SHEET CLIENT ENGAGEMENT The group is using this balance sheet • Help clients to assess climate impact view to understand its baseline and responses (including transition 1 2 pathways) • Gives group better understanding of b
Slide 7: FirstRand climate balance sheet is a strategic tool to measure progress
7 FirstRand climate balance sheet is a strategic tool to measure progress against the group's 2050 net-zero ambition Overall aim is to improve emissions intensity (emissions metric tonnes/ Rm advances) over time
Slide 8: Client engagement drives origination and product innovation
8 Client engagement drives origination and product innovation The climate risk awareness of the top 100 clients has improved: Analysis indicates that South African clients in hard-to-abate sectors are maturing in the active management of their decarbonisation journeys
Slide 9: Climate response is holistic: operationalised through core structures and processes
9 Climate response is holistic: operationalised through core structures and processes Integrated into FRM Dedicated sustainable finance Dedicated governance structures (including dedicated FRM teams across operating Structures embedded in business committee providing enablement businesses for climat
Slide 10: Responding to climate risk and opportunities is fully enabled by financial resource allocation
10 Responding to climate risk and opportunities is fully enabled by financial resource allocation FRM framework – key enabler Sustainability bond issuances Incentivise green deals through Partnering with development finance differentiated pricing institutions (DFIs) Three issuances to date: FRM poli
Slide 11: FRB's second green bond issuance
11 FRB’s second green bond issuance
Slide 12: FirstRand's sustainability bond framework
12 FirstRand’s sustainability bond framework In December 2021, the group published its sustainability bond framework under which its subsidiaries can issue thematic debt instruments, such as green, social and/or sustainability bonds • Aligned to international best practice and guidance as issued by
Slide 13: FRB's second green bond follows established principles driving additionality
13 FRB’s second green bond follows established principles driving additionality and appropriate origination Bond proceeds will be fully allocated to eligible loan/asset portfolio within two years from the date of each issuance Existing loans are those which have reached financial close, up to 24 mon
Slide 14: SA's energy transition landscape presenting immediate opportunities for business
14 SA’s energy transition landscape presenting immediate opportunities for business GWh per month 25 000 Peak energy supply in 2007, load shedding begins in 2008 Peak energy crisis in 2023, private power ramps up 20 000 Private power 15 000 10 000 Economic impact of load shedding negligible from 202
Slide 15: RMB Green solutions and track record
15 RMB Green solutions and track record
Slide 16: Green asset focus within RMB
16 Green asset focus within RMB Renewable energy Green buildings • South Africa’s JET IP1 2023 – 2027 calculates that around 6 GW • Real estate drives nearly 40% of global carbon emissions, making of new renewable energy capacity needs to be added to the grid it a priority to achieve climate commitm
Slide 17: RMB is a market leader in sustainable finance
17 RMB is a market leader in sustainable finance RMB facilitation per product (FY2023) South African bond market share1 11% Green loans 34% RMB sustainable finance facilitated a Green bonds 42% significant share of 2023 sustainable R36.3 billion Green equity CY2023 finance bond instruments in the li
Slide 18: Impact of RMB's facilitation
18 Impact of RMB’s facilitation Source: FirstRand 2023 climate strategies report.
Slide 19: Impact indicators for new issuance
19 Impact indicators for new issuance Minimum of two metrics per category will be included in the impact report Renewable energy Green building • Total installed capacity (MW) • Number of green buildings funded with eligible certification (e.g. EDGE) • Annual generated renewable power (MWh/year) • T
Slide 20: Term sheet
Term sheet FirstRand Bank
Slide 21: Indicative term sheet
21 Indicative term sheet Issuer FirstRand Bank Limited National scale credit rating Moody’s Aa1.za and S&P Global zaAA Nominal target R2.5 billion, with the ability to increase to R3 billion, subject to volume and bid spreads Note tenor 3-year/ 5-year/ 7-year Interest payment basis Floating rate not
Slide 22: Indicative timeline
22 Indicative timeline Event Date Virtual investor roadshow 25/26 April 2024 Term sheet with draft APS 29 April 2024 Term sheet with price guidance 6 May 2024 Proposed auction date 13 May 2024 Settlement date (t+3) 16 May 2024
Slide 23: Appendix
Appendix FirstRand Bank
Slide 24: Relevant links
24 Relevant links Report/disclosure Link https://www.firstrand.co.za/media/investors/annual-reporting/firstrand-climate-change- FirstRand 2023 climate strategies report strategies-report-2023.pdf FirstRand climate hub https://www.firstrand.co.za/investors/integrated-reporting-hub/climate/ https://ww
Slide 25: FirstRand climate ambitions and commitments
25 FirstRand climate ambitions and commitments
Slide 26: FirstRand climate roadmap
26 FirstRand climate roadmap
Slide 27: FirstRand climate roadmap (continued)
27 FirstRand climate roadmap (continued)
Slide 28: FirstRand climate roadmap (continued)
28 FirstRand climate roadmap (continued)
Slide 29: FirstRand climate roadmap (continued)
29 FirstRand climate roadmap (continued)
Slide 30: FirstRand climate roadmap (continued)
30 FirstRand climate roadmap (continued)