The first South African issued Green Bonds were listed on the Johannesburg Stock Exchange (JSE) on Friday 9 March 2018.Green Bonds raise money that is specially allocated for funding projects that result in positive environmental and climate benefits. The R1.1 billion Green Bonds, which are available for terms of five, seven and ten years, issued by Growthpoint Properties will be used to fund the green buildings and green initiatives of South Africa’s leading REIT.
Benefits of committing to a climate-resilient futureThe Green Bonds are priced at 139 basis points (1.39%) for the five-year term, at 169 basis points (1.69%) for the seven-year term and at 200 basis points (2.00%) for the 10-year term above three-month JIBAR. The bond auction took place on Tuesday, 6 March 2018, and is believed to be the first public auction in South Africa for a 10-year bond for a real estate company.
“The JSE is proud to welcome Growthpoint Properties to the Green Bond Segment as the first corporate in South Africa to issue a Green Bond,” says Donna Nemer, Director Capital Markets at the JSE.“Growthpoint’s successful inaugural Green Bond proves there are benefits in committing to promoting South Africa’s climate-resilient future as well as for being at the forefront of the financial sector’s response to the investment challenges posed by climate change.´