- Johannesburg, 30 April 2019: Today, the JSE celebrated Nedbank Limited's listing on its Green Bond Segment. Nedbank Limited is the first commercial bank in South Africa to list a green bond on the JSE’s Green Bonds segment.
The JSE's Green Bond Segment was launched in October 2017 and it provides companies with an effective tool to raise capital for investments that are specifically earmarked for climate and environmental projects.
Donna Nemer, Director of Capital Markets at the JSE says "As a multi asset class exchange, the JSE is pleased to be the venue of choice for Nedbank and we welcome them to the Green Bond Segment. Responsible investments have become a business priority for many organisations across the globe, and although this is the third green bond to list on our segment, we believe there is significant potential for growth in South Africa and on the continent."
Nedbank Limited placed an amount of R1.7bn of bonds in the market to fund renewable energy projects. This was three times oversubscribed as they received bids totalling R5.5 billion, demonstrating strong investor appetite for good-quality environmental, social and governance (ESG) focused assets.
According to Bruce Stewart, Head of Debt Capital Market Origination at Nedbank CIB, the issue of the Renewable Energy Bond forms a key part of Nedbank’s commitment to delivering tangible financial support to projects that contribute towards the achievement of the United Nation’s Sustainable Development Goals (SDGs). “As a bank with a stated purpose to use our financial expertise to do good for individuals, families, businesses and society, Nedbank has committed itself to contributing meaningfully to the achievement of the SDGs,” Stewart explains, “and this new Renewable Energy Bond is a key way in which we are transforming that sustainable development intent into tangible action.”
Stewart explains that, in line with this sustainable development commitment, Nedbank has recently undergone a process of aligning its commercial activities with the SDGs, the result of which has been the commitment of a significant portion of the bank’s lending book towards sustainable activities, particularly in the renewable energy space.
The issuance of green bonds allows companies to strengthen their credentials as sustainable and responsible organisations, whilst allowing investors to gain socially responsible investment opportunities.
The JSE has three bonds listed in its Green Bonds Segment with a market capitalisation of R5.10 billion. ESG isn’t simply a nice to have. “It is about positioning our market for a more resilient, green economy and providing investors with socially conscious debt products.” concludes Nemer.