FirstRand Bank, one of South Africa’s major lenders, listed two sustainability bonds on the Johannesburg Stock Exchange (JSE). The bonds will finance and refinance borrowers looking to invest in green buildings and affordable housing projects.
The two bonds, which have a total value of R2 billion, are part of a long-term program to raise R72 billion for FirstRand’s sustainability projects. The bonds are listed on the JSE’s Sustainability Segment, where they are trading under JSE codes FRJ27S and FRJ29S. The Sustainability Segment was established by the Johannesburg-based bourse to assist companies to raise debt for green, social and sustainable investment projects.
Valdene Reddy, Director of Capital Markets at the JSE, said she is inspired by the commitment shown by South African corporates in balancing the imperative to generate returns for investors and supporting collective responsibility for mitigating climate change.
“It is encouraging that the proceeds that are going to be raised from bond issuances will be used to fund projects that will contribute to creating shared prosperity for a broad range of stakeholders including low-income and middle-income earners, developers, and shareholders. We are experiencing extremities through severe droughts and devastating floods, which have proven catastrophic for food security and caused untold damage to infrastructure and human lives. The Sustainability Segment has become an important platform for helping issuers raise capital for climate-friendly projects,” she said. The bonds listed by FirstRand Bank brings the number of sustainability bonds listed on the JSE to 44, raising the segment’s market capitalization of R23.2 billion.
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