Nedbank, based in South Africa, aims to bolster its investment banking team to seize opportunities emerging in sectors such as renewable energy, water, and logistics within Africa’s most developed economy.
Amid challenges like electricity shortages and water scarcity, outgoing CEO Mike Brown noted a growing trend of public-private partnerships to address these issues effectively, Bloomberg reported.
To facilitate such ventures, Nedbank intends to expand its investment banking workforce and allocate more capital to the business, as indicated in Brown's recent remarks following an interview.
Despite operating expenses rising, the bank's corporate and investment banking division has remained profitable, generating R6.8 billion in headline earnings in 2023.
In pursuit of improved returns, Nedbank has scaled back capital allocation to the division housing property finance, investment banking, and transaction services.
Brown stressed the long-term growth potential in infrastructure sectors like renewable energy, logistics, and water, positioning Nedbank's investment bank for sustained expansion.
South Africa’s response to energy and infrastructure challenges includes a program offering state-backed contracts for long-term power purchases, attracting significant green-power investments.
Nedbank has been actively involved in approximately half of the bidding rounds for power supply contracts, expressing interest in further participation in public infrastructure projects.
With Brown retiring after 14 years as CEO, Jason Quinn, previously with Absa and Ernst & Young, will take over.
Nedbank plans to extend its investment banking operations across the African continent, with a focus on M&A advisory services and the mining sector.
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