Growthpoint becomes first South African corporate to list on the green bond segment of the Johannesburg Stock Exchange
Growthpoint Properties has listed on the Green Bond Segment of the Johannesburg Stock Exchange becoming the first corporate in South Africa to list in that segment.
"The JSE is proud to welcome Growthpoint to the Green Bond Segment, but also importantly for being the first corporate in South Africa to issue a green bond. Growthpoint's successful inaugural green bond has proved there are benefits in committing to the promotion of 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," says Prejelin Naggan, head of Primary Markets at the JSE.
The JSE's Green Bond Segment was launched in October last year and it provides a platform for companies, and other institutions, to raise funds that are ring-fenced for low carbon initiatives and for investors to invest in securities that are truly green.
"We are proud to be the first corporate to list on the new Green Bond Segment of the JSE. This is an exciting milestone for all involved. The launch of our Green Bond has further diversified Growthpoint's sources of funding by linking our sustainable developments and green buildings with capital markets. They have been well received by local and international investors and we are pleased with the results. Growthpoint will continue to drive green development and a sustainable property sector," says Estienne de Klerk, CEO of Growthpoint South Africa.
The R1.1 billion ($94 million) Green Bonds issued by Growthpoint will be used to refinance funding for the green office buildings in the new Growthpoint THRIVE Portfolio and specifically the THRIVE Platinum Portfolio, which includes its top green-rated office properties.
Buildings in this portfolio have a South African Property Owners Association (SAPOA) Premium- or A-grade rating as well as a Green Building Council of South Africa (GBCSA) Green Star SA rating of Four Stars or higher (design, as-built or existing building performance).
In addition, suitable industrial and retail properties with Four-Star Green Star ratings or higher will also be eligible. Environmental projects related to Growthpoint's buildings that have positive environmental impacts, such as solar energy projects, will also qualify for Green Bond funds.
"Growthpoint is laying new foundations for the capital flows needed to achieve the commitments within the South African context for securing investments and jobs in the future. Together with the emergence of other corporate green bond issuers we are confident that this will make a leading contribution to developing green bond markets, creating new and innovative climate finance solutions. Growthpoint should be greatly congratulated for being at the forefront of this," concludes Naggan.