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 future
The 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.´
Building a sustainable property sector
Commenting on the listing Norbert Sasse, Group CEO of Growthpoint Properties, says Growthpoint’s inaugural Green Bonds link the company’s sustainable developments and green buildings with capital markets.
“This gives investors a unique opportunity to participate in supporting greater environmental sustainability and climate change mitigation and enables them to evaluate the environmental impact of their investment.
“The work of the JSE, bond arranger RMB and our team at Growthpoint, as well as the interest and support of investors in our pioneering Green Bonds, has been exciting. We are pleased with the results of the issue and the positive response from local and international investors. We intend to continue to be a catalyst for a more sustainable property sector,” he concludes.