GOVERNMENT FINANCE: USE OF PROCEEDS FRAMEWORK PUBLISHED

GOVERNMENT FINANCE: USE OF PROCEEDS FRAMEWORK PUBLISHED

• 01 June 2026
• National Treasury
• SA Legal Academy

National Treasury has published a sustainable finance framework document outlining national government’s intended use of proceeds from the issuance of ‘green, social and sustainability financing instruments … to fund new and existing projects with environmental and/or social benefits’. According to the framework, such instruments ‘could include bonds and/or loans (that may be) private placements’.

Informed by International Capital Market Association and Loan Markets Association guidelines, the framework was developed in consultation with S&P Global Ratings, whose second party opinion has also been published.

According to an accompanying National Treasury media statement on the framework, it includes definitions of ‘eligible categories, governance arrangements, and reporting principles’. The use of proceeds from sustainable financing instruments will thus remain ‘subject to internal readiness processes’. These include:

• ‘confirmation of a robust pipeline of eligible expenditures’
• ‘operational reporting systems’, and
• ‘the establishment of appropriate governance structures’.

Over time, the framework will be expanded to provide the ‘flexibility to access both project-based and target-linked instruments’.

• framework
• second party opinion
• media statement

Published by SA Legal Academy Policy Watch

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